AUD/USD fails to clear 0.80 psychological barrier, retreats from highs

The AUD/USD pair continued gaining traction through Asian session on Wednesday and jumped back closer to the key 0.80 psychological mark, albeit has retreated from highs.

The pair built on previous session's up-move from the 0.7900 handle and caught some fresh bids after Australian data showed a big improvement in the construction activity and a lower-than-expected drop in the building approvals. 

The Australian Dollar also benefitted from a mildly softer tone around the US Dollar and the prevailing bullish sentiment around commodity space, especially copper, which tends to boost demand for commodity-linked currencies. 

However, a modest uptick in the US Treasury bond yields kept a lid on further up-move for higher-yielding currencies - like the Aussie.

Moving ahead, today's macroeconomic releases from the US - ADP report and GDP revision, would now be looked upon for some fresh impetus later during the NA session. In the meantime, the US bond yield dynamics would act as a key determinant of the pair's movement through European trading session.

Technical levels to watch

Immediate resistance remains near the 0.80 mark, above which the pair is likely to dart towards August monthly highs resistance near the 0.8035-40 region en-route 0.8065 level touched on July 27.

On the flip side, mid-0.7900s now seems to have emerged as immediate support, which if broken could accelerate the fall back towards the 0.7900 handle before the pair eventually drops to its next support near the 0.7880-75 region.