AUD/USD: risks mounting to the downside?

Currently, AUD/USD is trading at 0.7651, down 0.00% on the day, having posted a daily high at 0.7661 and low at 0.7650.

AUD/USD is consolidating the upside after the dollar took a hit with a swing in the election polls that are now narrowing and starting to be favouring Trump just less than a week away from the elections. 

Market wrap: risk aversion permeated - Westpac

The S&P 500 index and Nasdaq Composite Index dropped again as Democratic presidential nominee Hillary Clinton was behind Donald Trump for the first time since May in the latest ABC News/Washington Post tracking poll, produced for ABC by Langer Research Associates. 

In the latest results, 46 percent of likely voters support Trump, and 45 percent are for Clinton. With the data taken to a decimal place for illustrative purposes, a mere 0.7 of a percentage point divides them.

Chinese PMI: positive for risk assets - Danske Bank

Fed: On hold tomorrow, December hike more likely due to better economic data - Danske Bank

Meanwhile, there is otherwise an air of caution around longs given the RBA's tone in their accompanying statement yesterday and easing bias despite remaining on hold yesterday.

Further risk events "The week’s highlight, the FOMC decision, should see the Fed remain on the sidelines but to again signal intent for Dec. ADP (private sector) payrolls is  also due ahead of the main payrolls report on Friday. Both should show robust gains for employment," - explained analysts at Westpac. 

AUD/USD levels

"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)," explained the analysts at Wetpac, adding, "By year end, there’s a case for a correction towards 0.74 if the Fed tightens in December as we expect."

With spot trading at 0.7652, we can see next resistance ahead at 0.7652 (Weekly High), 0.7652 (Daily Open), 0.7661 (Daily High), 0.7664 (Daily Classic R3) and 0.7688 (Weekly Classic R1). Support below can be found at 0.7651 (Hourly 20 EMA), 0.7650 (Daily Low), 0.7643 (Daily Classic R2), 0.7626 (Daily Classic R1) and 0.7626 (Hourly 200 SMA).