AUD/USD tumbles to session lows amid notable USD demand

Having touched a two-week high level of 0.7963, the AUD/USD pair changed course and has now drifted into negative territory.

Currently placed at session lows, around the 0.7920-15 region, the pair stalled its strong recovery move from near one-month lows touched on Tuesday and retreated around 40-pips from session tops. 

The market seems to have digested Wednesday's dovish FOMC minutes, which revealed that the central bank was in no hurry to raise interest rates further amid concerns over easing inflationary pressure. 

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Hence, a goodish uptick in the US Treasury bond yields supported a notable US Dollar demand and has been one of the key factors weighing on higher-yielding currencies - like Aussie. 

Also collaborating to the pair's weakness was today's Australian jobs data that showed an unexpected drop in the full-time jobs in July, and weaker trading sentiment around commodity space, especially copper. 

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Next on tap would be the second-tier US economic data, which would be looked upon for some short-term impetus ahead of speeches by Dallas Fed President Robert Kaplan and Minneapolis Fed President Kashkari.

Technical levels to watch

A follow through retracement back below the 0.7900 handle is likely to accelerate the fall back towards mid-0.7800s before the pair eventually drops to 0.7825-20 important horizontal support. 

On the upside, the 0.7960-65 region remains an immediate strong hurdle, above which the pair is likely to aim towards surpassing the key 0.80 psychological mark and test monthly highs resistance near the 0.8040-45 region.