AUD/USD finds some support near 0.78 handle, but remains vulnerable

The AUD/USD pair remained heavily offered for the fourth consecutive session and touched a two-month low during Asian session on Wednesday

The pair, however, managed to find some support near the 0.7800 handle and rebounded few pips from lows to currently trade around the 0.7820-25 region. Persistent greenback buying interest, with the key US Dollar Index holding near one-month tops, had been one of the key factors weighing on the major since the beginning of this week. 

The incoming US economic data, including Wednesday's durable goods orders data, reinforced market expectations that the Fed would raise interest rates further in December and was eventually seen driving flows away from higher-yielding currencies - like the Aussie.

Meanwhile, renewed optimism over the US President Donald Trump's ambitious pro-growth economic agenda, after Wednesday proposal for the biggest US tax overhaul in three decades, remained supportive of the prevalent bullish sentiment around the buck. 

   •  US tax plan: Significant cut in personal and corporate tax rates - Westpac

Even the prevalent negative trading sentiment around commodity space has failed to lend any support to commodity-linked currencies, with a follow through weakness below the 0.7800 handle, led by a follow through long unwinding pressure, now seems a distinct possibility.

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Technical levels to watch

Bears would be eyeing for a break through the 0.7800 handle, below which the pair is likely to accelerate the slide towards 100-day SMA support near the 0.7760 region. On the upside, any recovery attempts might now confront immediate resistance near mid-0.7800s, which if cleared might trigger a short-covering bounce towards 0.7885 level ahead of the 0.7900 handle.