AUD/USD eyes critical 0.79 handle with key events ahead in Asia
- AUD/USD awaits key drivers from the Asian session.
- The greenback is out of vouge on political setbacks.
- CRB was reading the highest since April and supportive.
AUD/USD has been challenging the 100 SMA on the hourly sticks from a US session that sent the dollar bulls running for cover in an exodus of US assets, squeezing yields lower in a flight to safety. Currently, AUD/USD is trading at 0.7692, up 0.04% on the day, having posted a daily high at 0.7694 and low at 0.7683.
Many hurdles this week that could see US rates pushed around significantly - ANZ
AUD/USD was already relatively stable on the session in the releases of the inline PCE, the Fed's preferred measure of inflation, but given some of the less positive aspects of the data, the higher betas were firm and firmed more so on the political setbacks. Oil was an additional supporting factor at near YTD highs while the CRB was reading the highest since April. The minor recovery was falling just shy of the 200-D SMA at 0.7693.
US: Personal consumption surged in September while income continued to disappoint - Wells Fargo
The next catalysts come in the form of Australia the September New Home Sales monthly change and the Chinese official PMIs figures for October - Subsequently, there could be a big impact on the Aussie's price should the manufacturing in the world's second-largest economy and readings below expansion would certainly look problematic for the Aussie outlook in the near term.
AUD/USD levels
Monthly technicals are bearish while the daily sticks show another long lower wick form and the RSI's biased is up. The price is sat just above where the daily 38.2% Fibo sits at 0.7661, with eyes on the 200-D MA at the figure above where R1 and 38.2% weekly fibo converge.
Valeria Bednarik, chief analyst at FXStreet explained that in the 4 hours chart, the price is struggling around a bearish 20 SMA, as the Momentum indicator aims higher around its mid-line, but notes that the RSI is regaining the downside around 41, limiting chances of a bullish extension ahead, particularly if the pair is unable to advance, and sustain gains above the 0.7700 mark.