AUD/USD consolidates in a narrow range around 0.79 handle

The AUD/USD pair struggled to build on overnight minor rebound from 0.7880 level and oscillated within 20-25 pips narrow trading range.

Currently placed at the lower end of the daily trading range, around the 0.7900 handle, a minor uptick in the US Treasury bond yields extended some support to the US Dollar and was seen weighing on higher-yielding currencies - like the Aussie. 

Meanwhile, a mildly positive sentiment around commodity space, with copper prices trading with gains of around 0.5%, underpinned demand for commodity-linked currencies and helped limit further losses, at least for the time being. 

Investors, however, seemed to refrain from placing aggressive bets ahead of the much awaited Jackson Hole Symposium, where the Fed Chair Janet Yellen's speech would shed fresh light on the path of interest rate hikes in the US and eventually drive the greenback in the near-term. 

Ahead of the Jackson Hole event, today's US economic data - weekly jobless claims and existing home sales data would now be looked upon for some short-term trading impetus. 

Technical levels to watch

On a sustained weakness below 0.7880 level (yesterday's low), the pair is likely to accelerate the slide towards 0.7830-25 horizontal support en-route the 0.7800 handle. 

Meanwhile, on the upside, any recovery move might continue to confront fresh supply near the 0.7925-30 region, above which the pair is likely to surpass 0.7950-60 intermediate hurdle and aim towards reclaiming the key 0.80 psychological mark.

   •  RBA Communication: A clear signal of intent – ANZ