AUD/USD: Bears attack 0.7100 as S&P 500 futures tank 1%

AUD/USD sold-off into risk-aversion, S&P 500 futures’ slide.
US Presidential election debate rescues the US dollar bulls.
Aussie ignores mixed Chinese PMIs ahead of key US data.

Dhwani Mehta FXStreet

AUD/USD is extending losses in early Europe, following a rejection at five-day highs of 0.7150, as risk-aversion remains at full steam in the aftermath of the first US Presidential election debate.

The election debate between President Donald Trump and opposition candidate Joe Biden was not a market mover. Although Trump’s warning about the delay in the election results raised doubts about a ‘peaceful transition’, with the odds for a Biden win on the rise, spooked markets and lifted the demand for the US dollar across the higher-yielding assets.

The US stock futures quickly shaved-off gains and slipped nearly 50-points while the higher-yielding aussie dollar also followed suit. At the time of writing, AUD/USD sheds 0.25% to trade at 0.7110, having tested the 0.7100 support.

The $10 sell-off in gold also collaborated with the downtick in the resource-linked aussie. Meanwhile, the bulls were offered little reprieve from the expansion in the Chinese Manufacturing PMIs released by Caixin and NBS.

Looking ahead, the US dollar dynamics and global market sentiment will have a strong bearing on the risk-sensitive AUD pair, with eyes on the US ADP jobs, GDP and personal consumption data.

AUD/USD Technical levels

Any pullbacks are likely to meet fresh supply once at 0.7150, above which the September 23 high of 0.7179 will be put to test. To the downside, the immediate cushion is seen at 0.7076 (5-DMA) below which the sellers will target the 100-DMA at 0.7025.

AUD/USD Additional levels

AUD/USD

Overview
Today last price	0.7110
Today Daily Change	-0.0021
Today Daily Change %	-0.29
Today daily open	0.7131

Trends
Daily SMA20	0.7223
Daily SMA50	0.7205
Daily SMA100	0.7019
Daily SMA200	0.6776

Levels
Previous Daily High	0.7138
Previous Daily Low	0.7068
Previous Weekly High	0.7325
Previous Weekly Low	0.7004
Previous Monthly High	0.7416
Previous Monthly Low	0.7076
Daily Fibonacci 38.2%	0.7111
Daily Fibonacci 61.8%	0.7095
Daily Pivot Point S1	0.7086
Daily Pivot Point S2	0.7041
Daily Pivot Point S3	0.7015
Daily Pivot Point R1	0.7157
Daily Pivot Point R2	0.7183
Daily Pivot Point R3	0.7228

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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