AUD/USD slammed to fresh multi-week lows, below mid-0.7800s

The AUD/USD pair remained heavily offered through early European session and tumbled to fresh 6-week lows, below mid-0.7800s.

Growing market conviction for a December Fed rate hike action, further reinforced by the Fed Chair Janet Yellen's comments on Tuesday, underpinned the greenback and was seen driving flows away from higher-yielding currencies. 

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Meanwhile, Trump’s tax overhaul plans provided an additional boost to the buck, with the key US Dollar Index surging through the 93.00 handle, to fresh monthly tops, and further collaborated to the pair's overnight rejection slide from 50-day SMA support turned resistance. 

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Even the prevalent positive trading sentiment around copper prices did little to lend any support to commodity-linked currency and stall the pair's slump to its lowest level since mid-August. 

Later during the day, the US macro releases - durable goods orders and pending home sales data, would now be looked upon for some fresh impetus. 

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Technical levels to watch

Immediate support is pegged near 0.7820-25 area, below which the pair is likely to accelerate the fall even below the 0.7800 handle towards testing 100-day SMA support near the 0.7755 region.

On the upside, any recovery attempts beyond 0.7870 level is likely to meet fresh supply near the 0.7900 handle. Any subsequent move beyond the mentioned hurdle might now be capped at 50-DMA hurdle near the 0.7945-50 region.