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).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.