AUD/USD flirting with lows near 0.7900 handle

Having faced rejection just ahead of the key 0.80 psychological mark, the AUD/USD pair retreated around 90-pips from fresh multi-month tops and is currently placed at session lows.

The pair rallied hard and touched a fresh two-year high in reaction to mostly in-line Australian jobs report. The up-move, however, turned out to be short-lived and the pair turned sharply lower, reversing all of its strong gains recorded in the previous session. 

A goodish greenback recovery, with the key US Dollar Index inching back closer towards reclaiming the key 95.00 handle seems to have prompted traders to take some profits off the table, especially after the pair's recent upsurge of 400-pips over the past two weeks. 

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Traders even shrugged off a mildly positive sentiment around commodity space, with long unwinding trade turning out to be a key driver of the pair's sharp retracement from the highest level since May 2015.

Next on tap would be the US economic docket, which would be looked upon to grab some short-term trading opportunities ahead of RBA speaks during Asian session on Friday.

Technical levels to watch

A follow through weakness below the 0.7900 handle might continue dragging the pair further towards 0.7830-25 horizontal zone with some intermediate support near 0.7870-65 region.

On the upside, 0.7940-50 region now becomes immediate strong resistance, above which the pair is likely to make a fresh attempt towards reclaiming the 0.80 handle.