AUD/USD keeps the red near one-week lows, around mid-0.7800s

   •  Weighed down by weaker Aussie construction data.
   •  The ongoing USD rebound exerts additional pressure.
   •  FOMC meeting minutes to provide fresh impetus.

The AUD/USD pair trimmed some of its early steep losses and has managed to bounce off around 20-pips from one-week lows, set earlier today.

The pair extended its retracement slide from the 0.80 neighborhood, touched last Friday, and was being further weighed down by disappointing domestic data that showed a larger than expected contraction in the value of construction projects completed in the last quarter of 2017.

Adding to this, a weaker tone around copper prices continued exerting downward pressure on the commodity-linked Australian Dollar and a strong follow-through US Dollar buying interest dragged the pair to an intraday low level of 0.7841. 

The selling pressure now seems to have abated a bit as traders start repositioning for today's key event risk - the highly anticipated FOMC meeting minutes, which could have a lasting effect on higher-yielding currencies - like the Aussie. 

In the meantime, the release of existing home sales data from the US might provide some short-term trading opportunities during the early NA session.

Technical levels to watch

Any subsequent weakness is likely to find some buying interest near 100-day SMA, around the 0.7825-20 region, which is followed by the 0.7800 handle and the very important 200-day SMA support near the 0.7780-75 region.

On the upside, any meaningful recovery is likely to confront fresh supply near the 0.7890-0.7900 region, above which a bout of short-covering could lift the pair back towards mid-0.7900s supply zone.