AUD/USD faces rejection at 0.80 handle, drops to fresh session lows
| • Overbought conditions prompt some profit-taking.
• Solid USD rebound adds to the downward pressure.
The AUD/USD pair faced rejection near the key 0.80 psychological mark, near 4-month tops, and has now retreated over 50-pips from session tops.
The pair initially got a boost from today's upbeat Aussie data, showing that the value of home loan lending unexpectedly rose in November and helped offset near-term overbought conditions.
However, a solid US Dollar rebound, supported by a goodish pickup in the US Treasury bond yields prompted traders to take some profits off higher-yielding currencies - like the Aussie.
Currently trading around the 0.7945-40 region, testing session lows, there isn't any major market-moving economic data due for release on Wednesday and hence, the US bond yield dynamics would continue to play a key role in determining the pair's momentum ahead of Thursday Australian employment details.
Technical levels to watch
Immediate support is pegged near 0.7915 level, below which the pair is likely to fall below the 0.7900 handle and head towards testing 0.7870-60 horizontal support. On the upside, the 0.80 handle might continue to act as an immediate strong hurdle, which if cleared could lift the pair further towards 0.8030-50 supply zone.
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