AUD/USD surrenders daily gains, back around mid-0.7900s ahead of US data

The AUD/USD pair faced rejection near the key 0.80 psychological mark and has now surrendered all of its daily gains. 

The pair gained fresh traction during Asian session on Wednesday and the up-move was supported by positive surprises from Australian building approvals and construction data.

Bulls, however, failed to lift the pair beyond the 0.80 handle amid strong follow through greenback buying interest. In fact, the key US Dollar Index extended overnight strong recovery move from over 2-1/2 year lows and kept a lid on any further up-move for the major. 

The pair's post-data retracement to mid-0.7900s could also be attributed to a modest pull-back in commodity prices, which was seen weighing on commodity-linked currencies, including the Australian Dollar. 

Even a subdued action around the US Treasury bond yields did little to extend any support to higher-yielding currencies - like the Aussie as investors now shift their focus to important US macroeconomic releases - ADP report and GDP revision. 

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Technical levels to watch

Immediate support is pegged near 0.7925 level, below which the pair is likely to accelerate the slide back towards the 0.7900 handle before eventually dropping to 0.7870-65 strong horizontal support. 

On the upside, momentum back above 0.7965 level might continue to confront some fresh supply near the 0.80 mark, which if cleared might trigger a short-covering rally towards August monthly highs resistance near the 0.8035-40 region.