AUD/USD sits near session lows, US data/Powell’s testimony eyed

   •  Holds within yesterday's trading range amid a subdued trading session.
   •  Investors await Powell's first testimony for fresh directional impetus.

After an initial uptick to 0.7870 area, the AUD/USD pair met with some fresh supply and has now eroded a major part of previous session's up-move. 

A goodish pickup in the US Treasury bond yields, which was now seen lending some support to the US Dollar, turned out to be one of the key factors exerting some downward pressure around higher-yielding currencies - like the Aussie. 

Adding to this, weaker commodity prices further dented sentiment surrounding the commodity-linked Australian Dollar and collaborated to the pair's offered tone through the mid-European session.

The pair, however, has managed to hold its neck above the 100-day SMA immediate support as traders seemed reluctant to place aggressive bets ahead of the Fed Chair Jerome Powell's first congressional testimony before the House Financial Services Committee. 

Traders on Tuesday will also confront the release of important US macro data - durable goods orders and CB's consumer confidence index, which might help grab some short-term trading opportunities. 

Technical outlook

Valeria Bednarik, American Chief Analyst at FXStreet writes: “The short-term picture for the pair is neutral, given that in the 4 hours chart, the price is hovering around a modestly bullish 20 SMA, while technical indicators head nowhere around their mid-lines. The risk of a bearish extension is being limited by a Fibonacci support at 0.7820, the 50% retracement of the December/January rally. Below this level, the next support is last week's low at 0.7790, followed by the 0.7750 price zone. To the upside, the key is 0.7890, the 38.2% retracement of the mentioned rally, with gains beyond the level exposing the 0.800 figure.”