AUD/USD's U-turn meets resistance

AUD/USD is trading at 0.7573, up 0.14% on the day, having posted a daily high at 0.7584 and low at 0.7507.

We have seen a sharp rebound in the Aussie after demand lifted AUD/USD from lows of 0.7506 and in a 1-3 month outlook, analysts at Westpac explained that while further gains to around 0.77 are possible during the month ahead, driven in part by the faltering US dollar and yield-chasing flows, the AUD is losing energy (perhaps a reflection of its declining yield advantage). "By year end, there's a case for a correction towards 0.74 if the Fed tightens in December as we expect."

AUD/USD levels

Spot is presently trading at 0.7573, and next resistance can be seen at 0.7584 (Daily High), 0.7594 (Daily Classic R1), 0.7595 (Yesterday's High), 0.7596 (Hourly 200 SMA) and 0.7600 (Daily 20 SMA).

"Only an unexpected rise and daily chart close above the 0.7710/31 September highs would introduce scope to the 0.7836 April high (not favoured)," explained analysts at Commerzbank.

Support below can be found at 0.7570 (Hourly 100 SMA), 0.7564 (Daily Classic PP), 0.7562 (Daily Open), 0.7554 (Hourly 20 EMA) and 0.7539 (Weekly Low).