AUD/USD fades a spike to 0.8040, fresh 4-month tops
- DXY selling stalls?
- 0.81 handle still in sight.
- Awaits US consumer sentiment data.
Having consolidated briefly near 0.8015 levels, the AUD/USD pair caught a fresh bid-wave and refreshed four-month tops at 0.8039, as the bulls regained poise amid extension of the sell-off in the US dollar across its major peers.
However, over the last hours, the Aussie is seen retreating from the multi-month tops, as the USD bulls appear to have found some respite, thereby helping the USD index to stall the downside at the three-year lows of 89.96 levels.
The impending Senate vote on the US government stopgap funding bill coupled with a higher outlook for global interest rates continues to undermine the sentiment around the buck. Further, the renewed oil-price weakness also keeps a check on the rally in the resource-linked AUD.
However, the OZ currency remains buoyed on the back of the ongoing rally in the Yuan versus its US counterpart. The AUD is used a liquid proxy for bets on China, as China is Australia’s top trading partner.
All eyes now remain on the US prelim UoM consumer sentiment and Fedspeaks due later today for fresh momentum on the prices.
AUD/USD Technicals
The pair finds next resistances at 0.8050 (psychological levels), 0.8072 (Sept 10 High) and 0.8102 (daily R3). Meanwhile, the supports are located at 0.7983 (5-DMA), 0.7930 (10-DMA) and 0.7878 (20-DMA).
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.
