AUD/USD plummets to lows, risks breaking below 0.7700 mark

   •  A strong pickup in the USD demand prompts some aggressive selling. 
   •  Subdued US bond yields/positive commodities did little to lend support.
   •  US consumer confidence data eyed for some fresh trading impetus.

The AUD/USD pair extended its sharp retracement slide from multi-day tops and has now dropped to the 0.7700 handle, reversing a major part of previous session's strong up-move.

A strong US Dollar rebound, led by receding fears of a trade war between the world's two largest economies, prompted some aggressive selling and was seen as one of the key factors behind the pair's heavily offered tone on Tuesday. 

Meanwhile, traders seemed to have largely shrugged off a subdued action around the US Treasury bond yields/positive commodity prices, which tends to underpin demand for higher-yielding/commodity-linked currencies - like the Aussie, with the USD price dynamics acting as an exclusive driver of the pair's fall to fresh session lows.

Traders now look forward to the US economic docket, highlighting the release of CB Consumer Confidence Index in order to grab some short-term opportunities ahead of Atlanta Fed President Raphael Bostic's scheduled speech.

Technical levels to watch

A follow-through selling pressure has the potential to continue dragging the pair further towards 0.7670 intermediate support en-route 0.7640-35 area and the 0.7600 handle. On the upside, any recovery attempts might continue to confront fresh supply near mid-0.7700s, which if cleared might trigger a short-covering bounce towards an important moving averages confluence resistance near the 0.7800 handle.