AUD/USD bears defending territory on 0.77 handle

AUD/USD has struggled to keep with them 0.77 handle after reaching overnight highs of 0.7732, its highest in almost three weeks.

AUD/USD was performing well overnight in a continuation of the bull trend set at the end of August business from lows of 0.7490, underpinned by commodities and a weaker DXY of late. Natural gas prices were a driver along with Chinese data with better imports figures rising by 1.5% in August after falling by 12.5% in July. 

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The theme around Central Banks is heavy this month as we await the FOMC and BoJ and given the ECB held, disappointing the markets, the Fed have an easier path to hike rates should data improve although markets are not expecting a move as soon as the forthcoming meeting, softening the USD, albeit managing to close the US session higher. 

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AUD/USD levels

With spot trading at 0.7644, we can see next resistance ahead at 0.7649 (Daily High), 0.7649 (Daily Classic S1), 0.7670 (Hourly 20 EMA), 0.7675 (Daily Classic PP) and 0.7686 (Weekly Classic R2). Support below can be found at 0.7644 (Daily Open), 0.7643 (Hourly 100 SMA), 0.7636 (Daily Low), 0.7636 (Yesterday's Low) and 0.7629 (Weekly Classic R1).

FXStreet outlook in the 4 hours chart:

"Indicators head lower almost vertically, crossing their mid-lines into negative territory,  and coming from overbought levels, whilst the price is currently breaking blow a still bullish 20 SMA, supporting a test of the mentioned 0.7600 figure," explained Valeria Bednarik, chief analyst at FXStreet.