AUD/USD is subdued after being sold off to the current lows with the drop in commodities and risk sentiment overnight leading into today's US session. AUD/USD was drifting within the cluster of MA's on the hourly time frames, but dropped below the 20 SMA and now consolidates the downside.
The greenback has been progressively better off since the losing 3 week stretch, despite the calls for a hike in 2016 opposed to the end of the year in the Dec FOMC meeting.
The docket has been quiet these last days, with only the upbeat RBA minutes to reflect back on and Chinese GDP hitting lowest levels since 2009. We await the outcome of data flows over the course of the next few weeks and until the next RBA meeting to know what direction this major will take into the year end.
Technically, the key levels are with the 0.7385 Fibo retracement before 0.7367 2014-2015 downtrend and the August high at 0.7439. On the downside, 0.7200 is a further key level of support and a break and daily close below could enforce a continuation of a recovery in the greenback.
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