AUD/USD dropped 1.3% to support at 20 dma

Currently, AUD/USD is trading at 0.7627, up 0.01% on the day, having posted a daily high at 0.7631 and low at 0.7619.

After yesterday's labour data, AUD/USD fell to a fresh low in the U.S. session with bulls riding the wash of that disappointment, but buoyed by a strengthening greenback that rose to a seven-month high following the ECB statement and presser.  AUD subsequently fell 1.3% to the aforementioned low ahead of the 20 dma, 0.7619.. Oil and the commodities sector giving some gains back with WTI back on the $50 handle. "However, the sector still looks positive from a technical standpoint, which should see this weakness be relatively short-lived," argued Imre Speizer, analyst at Westpac, also warning vulnerable to falling below 0.7620 today, with added impetus from a rejuvenated US dollar.

AUD/USD levels

Westpac: "AUD/USD 1-3 month: 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. (13 Sep)" 

Meanwhile, current price is 0.7628, with resistance ahead at 0.7631 (Daily High), 0.7632 (Daily Classic S2), 0.7650 (Hourly 20 EMA), 0.7655 (Hourly 100 SMA) and 0.7676 (Weekly Classic R1). Next support to the downside can be found at 0.7627 (Daily Open), 0.7621 (Yesterday's Low), 0.7619 (Daily Low), 0.7619 (Daily 20 SMA) and 0.7613 (Hourly 200 SMA).