AUD/USD flirting with lows, around 0.7830 level

   •  Aussie weighed down by an expected fall in iron ore prices. 
   •  Resurgent USD demand adds to the downward pressure.

The AUD/USD pair remained well-offered through the early NA session and is currently placed at session lows, around the 0.7830 region.

The pair stalled its recent bullish trajectory and came under some intense selling pressure on Monday following a forecasted drop in iron ore prices for 2018. 

The Department of Industry, Innovation and Science resource and energy now expect iron ore prices to average $51.50 a ton in 2018, down 20% from 2017, because of rising global supply and moderating demand from top importer China.

Against the backdrop of the post-NFP strong US Dollar recovery move, the bearish outlook prompted some fresh selling around commodity-linked currencies and was seen weighing heavily on the major. 

Even a mildly softer tone around the US Treasury bond yields, which tends to underpin demand for higher-yielding currencies - like the Aussie, did little to lend any support and stall the pair's sharp corrective slide from closer to 2-1/2 month tops. 

There aren't any major market-moving economic releases due for release from the US, and hence, the key focus would be on speeches by influential FOMC members. 

Technical outlook

Valeria Bednarik, American Chief Analyst at FXStreet writes, “the short-term picture indicates that the downward potential decreased, although the risk leans towards the downside, as in the 4 hours chart, the pair broke below its 20 SMA for the first time since December 21st, whilst technical indicators entered negative territory, but quickly lost their bearish strength, now presenting a neutral stance. The 0.7800 figure is the immediate support, with a break below it favoring additional declines down to 0.7730. The main resistance continues being 0.7896, October monthly high.”