AUD/USD recovers over 40-pips from sub-0.7900 level

The AUD/USD pair trimmed some of its early steep losses and has recovered over 40-pips from a 3-day low level of 0.7875.

The pair came under some intense selling pressure on Friday on dovish remarks by the RBA Deputy Governor Guy Debelle. However, persistent US Dollar selling bias, coupled with the ongoing slide in the US Treasury bond yields helped limit losses for higher-yielding currencies - like the Aussie.

Moreover, the prevalent positive tone around copper prices further supported demand for commodity-linked currencies and helped the pair to bounce off lows.

The pair, however, held in negative territory through early NA session amid some profit-taking, following yesterday's failed attempt to extend the recent bullish trajectory beyond the key 0.80 psychological mark.

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It would now be interesting to see if bulls are able to regain control or long-unwinding pressure continues dragging the pair lower on the last trading day of the week and in absence of any major market moving economic releases from the US.

Technical levels to watch

Sustained weakness back below the 0.7900 handle now seems to drag the pair below session lows support near the 0.7875 region towards testing its next support near 0.7830-25 region. On the upside, bulls would be eyeing for a decisive break through mid-0.7900s, above which the pair seems all set to make a fresh attempt towards conquering the 0.8000 handle.