AUD/USD finds support ahead of 0.7900 mark, one-month lows

Having refreshed monthly lows in the 0.7900 neighborhood, the AUD/USD pair staged a modest recovery and is now looking to move back above 50-day SMA support turned immediate resistance.

On Thursday, the pair extended its post-FOMC rejection slide from the 0.8100 handle and tumbled around 120-points to break below 50-day SMA for the first time since early June. Chinese sovereign credit rating downgrade was seen as one of the key factors weighing heavily on the China-proxy Australian Dollar. 

With the US Dollar failing to build on its hawkish Fed statement-led strong gains, renewed N. Korean jitters revived demand for traditional safe-haven assets. Hence, a sharp slide in the US Treasury bond yields was seen adding to the greenback woes and extended some support to higher-yielding currencies - like the Aussie. 

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It, however, remains to be seen if the pair is able to build on the modest recovery attempt amid prevalent bearish trading sentiment around copper prices, which might now keep a lid on demand for commodity-linked currencies, including the Australian Dollar. 

Technical levels to watch

On a sustained recovery back above mid-0.7900s, the pair is likely to make a fresh attempt towards reclaiming the key 0.80 psychological mark before heading towards 0.8030-35 resistance zone.

Meanwhile, on the downside, the 0.7910-0.7900 region remains immediate support to defend, which if broken is likely to accelerate the slide towards 0.7870 strong horizontal support.