AUD/USD fades a spike to 0.7680, back to square one

The recovery in AUD/USD faltered near 0.7680 region, with the bears fighting back control amid weaker Asian equities and subdued oil prices.  

AUD/USD eyes 5-DMA at 0.7641

Currently, the AUD/USD pair almost unchanged at 0.7666, slipping back to daily lows struck at 0.7665. The Aussie reversed an uptick to daily highs and now flirts with session lows as persisting mixed sentiment in Asia fails to provide any support to the higher-yielding currency AUD.

Moreover, strengthening US dollar versus its major peers on the back of the first US election debate and upbeat US data also dragged the AUD/USD pair lower.

However, the downside remains cushioned on the back of auspicious consumer sentiment data from China, which somewhat eased risk-off trades in the market.

In the day ahead, the prevalent risk trends will play a key role behind the Aussie price-action ahead of the US durable goods data and Yellen’s speech.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7691 (Sept 6 high) above which gains could be extended to the next hurdle located at 0.7700/06 (daily R1) and 0.7750 (psychological levels). On the flip side, the immediate support located at 0.7603 (50-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7583 (20-DMA) and below that to 0.7542 (100-DMA).