AUD/USD drops to fresh session lows, around mid-0.8000s

   •  USD extracting support from surging US bond yields.
   •  Softer Aussie data exerts additional pressure.
   •  US data might provide some impetus ahead of Aussie CPI.

The AUD/USD pair finally broke down of its overnight consolidative trading range and retreated farther from Friday's 2-1/2 year tops. 

Against a backdrop of a goodish US Dollar rebound, the pair on Tuesday was further weighed down by below estimates release of the Australian NAB business confidence data. 

The NAB reported December business confidence index at a 5-month high level of +11, the highest since July 2017, but fell short of consensus estimates pointing to a reading of +12. Meanwhile, the business conditions index ticked higher to +13 but was also well below +15 anticipated and did little to lend any support. 

Adding to this, a sharp fall in commodity prices, especially copper, further dented the already weaker sentiment surrounding the commodity-linked Australian Dollar and collaborated to the pair's sharp fall closer to mid-0.8000s.

Later during the NA session, the CB's consumer confidence index, the only highlight from today's US economic docket, would now be looked upon for some trading impetus ahead of Aussie CPI and Chinese PMI prints, due for release during the Asian session on Wednesday.

Technical levels to watch

A follow-through selling pressure has the potential to continue dragging the pair further towards 0.8015 intermediate support en-route the key 0.80 psychological mark. On the upside, 0.8085 level, closely followed by the 0.8100 handle, might continue to act as immediate hurdles, above which the pair could make a fresh attempt towards retesting multi-year highs resistance near the 0.8135 region.