AUD/USD remains in a modest range, near 2-month lows

AUD/USD printed a fresh daily low after the beginning of the American session at 0.7746 and then rebounded modestly. The pair remains moving in a small range, between 0.7745 and 0.7765, on a quiet session. 

The aussie still faces pressure as AUD/USD remains near the 2-month low it reached on Friday at 0.7731, after the NFP report. 

Today the pair moved most of the day with a downward bias despite the recovery in gold prices and some risk appetite. Weaker-than-expected Chinese data affected the Australian dollar. The Chinese Caixin Markit September services PMI dropped to the lowest in 21 months to 50.6. 

On the other side, the greenback continues to be supported by rising expectations of a rate hike in December from the Federal Reserve, particularity after Friday’s NFP. On Wednesday the minutes of the latest FOMC meeting will be released. 

AUD/USD seen range bound – UOB

Technical levels

To the downside, the immediate support is seen at 0.7745 (daily low) followed by 0.7730 (last week low) and 0.7700. On the upside, resistance levels might be located at 0.7780 (daily high), 0.7795 (Oct 6 high) and 0.7840 (Oct 3 high).