AUD/USD down to test 0.7700 on RBA minutes, copper sell-off

The AUD/USD pair stalled its overnight bullish consolidation phase and broke sharply to the downside, following the release of RBA minutes, with the bears now attacking 0.77 handle.

The major met fresh supply after the RBA minutes highlighted threats in property market, as well as warned over an acceleration of domestic household debt, while maintaining that a rising AUD would complicate economic transition.

Adding to the latest leg lower, copper prices on COMEX witnessed heavy selling over the last hours, and weighed negatively on the resource-linked AUD. Copper plunged on hopes BHP Billiton would hold further talks that could lead to the restart of output at the world's biggest copper mine.

Markets now look forward to the Fedspeaks and US economic data due later in the NA session for fresh impetus. In the meantime, the spot will take cues from the risk trends.

AUD/USD Levels to watch   

At 0.7702, the pair finds the immediate support located at 0.7680 (100-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7651/50 (Mar 15 low/ psychological mark) and below that 0.7611/00 (200-DMA/ zero figure). On the flip side, the immediate resistance at 0.7748/50 (multi-week tops/ psychological levels) above which gains could be extended to the next hurdle located 0.7780 (Nov tops) and 0.7800 (zero figure).