AUD/USD challenging the 0.80 handle in Tokyo open

• AUD/USD looking for space on 0.80 handle.
• The dollar remains on the backfoot.

AUD/USD finished the overnight session near 0.8000 after a bullish start to the session helped along by a stabilisation in copper before a fade back to 0.7980. Currently, AUD/USD is trading at 0.8003, up 0.07% on the day, having posted a daily high at 0.8007 and low at 0.7993.

AUD/USD has spiked into the Tokyo open and caught a bid off the 100hourly SMA at 0.7994 to aforementioned highs. However, there is little of a catalyst here and no further scheduled events in the Asian session to support further volatility. 

Senate managing to get a sign off from Trump

Meanwhile, the news from overnight was positives in the Senate managing to get a sign off from Trump for a debt extension until Feb 8th but this lead to a rally in US Treasuries supporting the antipodeans. 

AUD/USD levels

Valeria Bednarik, chief analyst at FXStreet explained that the short-term outlook is bearish, as in the 4 hours chart, the pair broke below a horizontal 20 SMA at the beginning of the day, with the later recovery stalling below it:

"Technical indicators in the mentioned chart have recovered within negative territory before losing upward strength, now poised to resume their declines. The pair has a strong support area around 0.7930/40, where it bottomed multiple times last week, with a break below it probably leading to a test of a major Fibonacci support at 0.7890, the 61.8% retracement of the September/December decline," Valeria added.