AUD/USD inter-markets: a brief pause before the next leg of up-move?

The AUD/USD pair snapped three days of winning streak and retraced after rising to the highest level since September 8. The pair failed to build on to its early gains above 0.7700 handle despite of improving risk sentiment led by a positive surprise from OPEC to agree on a deal to cut oil production.

The pair's current leg of reversal from multi-week highs was primarily led by a retracement in Copper prices. A broad based greenback recovery, as measured by the US Dollar Index, limited the OPEC deal-led optimistic mood around the commodity and eventually was seen denting demand for commodity-linked currencies - like Aussie. 

Otherwise, the downside consolidation in the Volatility Index (VIX) and bond yields, for both the US and Australian 10-year Treasury bonds have been supportive of further up-move for the pair. Moreover, with market already ruling out possibilities of a Fed rate-hike action in November, given the proximity of the US presidential election to the next FOMC meeting, the Australian Dollar remains the key beneficiary of demand for higher-yielding currencies. 

Hence, it would prudent to conclude that any further boost to the risk-on sentiment and additional gains in Copper, the AUD/USD pair might continue scaling higher in the near-term.