AUD/USD clings to gains near multi-day tops, eyeing a move beyond 0.7100 mark

AUD/USD edged higher for the second consecutive session on Tuesday.
A softer tone around the USD was seen as a key factor lending support.
The uptick lacks bullish conviction ahead of the US presidential debate.

Haresh Menghani FXStreet

The AUD/USD pair traded near four-day tops during the early European session, with bulls now looking to extend the momentum further beyond the 0.7100 round-figure mark.

The pair gained positive traction for the second consecutive session on Tuesday and recovered further from two-month lows, around the key 0.7000 psychological mark, coinciding with 100-day SMA support. The overnight strong rally in the equity markets prompted some US dollar profit-taking, which, in turn, prompted a short-covering move around the perceived riskier Australian dollar.

The global risk sentiment remained well supported by upbeat Chinese data released over the weekend, which offered signs of economic recovery in the world's second-largest economy. Adding to this, the latest optimism over additional US fiscal stimulus measures further boosted investors' confidence and dented the greenback's relative safe-haven status.

The USD pullback, however, remained limited amid worries that the second wave of coronavirus infections could lead to severe lockdown restrictions and halt the current economic recovery. Adding to this, the US political uncertainty might further hold investors from placing any aggressive bets and cap any strong gains for the AUD/USD pair.

Hence, it will be prudent to wait for some strong follow-through buying before confirming that the recent corrective fall is over and positioning for any further positive move. Market participants now look forward to the release of the Conference Board's US Consumer Confidence Index for some trading impetus later during the early North American session.

The key focus, however, will be on the first US presidential debate between President Donald Trump and Democrat candidate Joe Biden, scheduled later this Tuesday. This, along with important US macro data, including the closely watched US monthly jobs report, will influence the near-term USD price dynamics and help investors to determine the next leg of a directional move for the AUD/USD pair.

Technical levels to watch

AUD/USD

Overview
Today last price	0.7092
Today Daily Change	0.0021
Today Daily Change %	0.30
Today daily open	0.7071

Trends
Daily SMA20	0.7235
Daily SMA50	0.7204
Daily SMA100	0.7012
Daily SMA200	0.6775

Levels
Previous Daily High	0.7075
Previous Daily Low	0.7028
Previous Weekly High	0.7325
Previous Weekly Low	0.7004
Previous Monthly High	0.7416
Previous Monthly Low	0.7076
Daily Fibonacci 38.2%	0.7057
Daily Fibonacci 61.8%	0.7046
Daily Pivot Point S1	0.7041
Daily Pivot Point S2	0.7011
Daily Pivot Point S3	0.6994
Daily Pivot Point R1	0.7088
Daily Pivot Point R2	0.7105
Daily Pivot Point R3	0.7135

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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