AUD/USD eases from tops, still well bid around 0.7130-25 region

The AUD/USD pair added to its intraday gains and refreshed daily tops, around the 0.7140 region during the early European session.

The pair once again managed to find some support near the 0.7100 round-figure mark and regained some positive traction on Tuesday amid a softer tone surrounding the US dollar. A modest uptick in the S&P 500 futures undermined the safe-haven greenback amid the US political uncertainty. This, in turn, was seen as one of the key factors that benefitted perceived riskier currencies, including the aussie.

However, growing market worries that the continuous surge in new coronavirus cases could trigger renewed lockdown measures and hinder the global economic recovery extended some support to the buck. Adding to this, the lack of progress in the US stimulus talks might further hold bulls from placing any aggressive bets and keep a lid on any runaway rally for the AUD/USD pair, at least for now.

Meanwhile, increasing bets that the RBA will cut interest rates in November might further collaborate towards capping the upside. Hence, any subsequent move up might be seen as a selling opportunity. That said, it will still be prudent to wait for a sustained break below the 0.7100 round-figure mark before positioning for any further near-term depreciating move for the AUD/USD pair.

Market participants now look forward to the US economic docket, highlighting the release of Durable Goods Orders data for some impetus. Apart from this, the broader market risk sentiment will influence the USD price dynamics and produce some meaningful opportunities around the AUD/USD pair.

Technical levels to watch