AUD/USD flirting with lows near mid-0.7800s

The AUD/USD pair maintained it’s offered tone through early NA session and has now dropped to fresh session low near mid-0.7800s.

Against the backdrop of today's disappointing Chinese macro data, which tends to weigh on the China-proxy Australian Dollar, a goodish recovery in the US Treasury bond yields helped the US Dollar to stage a goodish recovery and was also seen driving flows away from higher-yielding currencies - like the Aussie.

Adding to this, the prevalent weaker trading sentiment around commodity space also did little to provide any immediate respite and halt the pair's sharp retracement back closer to near 4-week lows, touched on Friday. 

With an empty US economic docket on Monday, the pair remains at the mercy of broad based USD recovery ahead of the RBA meeting minutes, due for release during early Asian session on Tuesday. 

Technical levels to watch

Bulls would try to defend multi-week lows support near 0.7840 level, below which the pair is likely to accelerate the fall towards the 0.7800 handle before eventually dropping to 50-day SMA support near the 0.7740 region. 

On the flip side, any recovery move back above 0.7870-75 area might now confront some fresh supply near the 0.7900 handle, which if cleared could trigger a short-covering bounce and lift the pair beyond 0.7920 level towards its next major hurdle near the 0.7960-65 region.