AUD/USD flirting with highs near mid-0.7900s

The AUD/USD pair was seen building on Friday's up-move but remained capped below an important supply zone in the region of mid-0.7900s.

The Fed Chair Janet Yellen didn't mention about the central bank's monetary policy path at the much awaited Jackson Hole Symposium and weighed heavily on the greenback, eventually helped the pair to extend its recovery move from multi-day lows near the 0.7865 region touched on Thursday. 

The key US Dollar Index languished near yearly lows at the start of a new trading week and supported the bid tone surrounding the major. Adding to this, the prevalent bullish sentiment around commodity space, especially copper, further underpinned the commodity-linked currencies and remained supportive of the pair's up-move, closer to 0.7950-60 strong hurdle.

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In absence of any major market moving economic releases, the pair remains at the mercy of USD price dynamics, which remains weak in wake of uncertainty over the US President Donald Trump's promised pro-growth economic agenda, fading prospects of a third Fed rate hike action in 2017.

Technical levels to watch

On a sustained break through 0.7860-65 supply zone, the pair is likely to aim towards reclaiming the key 0.80 psychological mark before eventually darting towards its next major hurdle near 0.8030-35 zone.

Meanwhile, on the downside, any pull-back below 0.7925 level now seems to find fresh buying interest near the 0.7900 handle, which if broken might trigger a near-term corrective slide and drag the pair below 0.7865 intermediate level towards testing 50-day SMA support near the 0.7810 region.