AUD/USD advance capped on commodities

By FXStreet FXStreet (Guatemala) – AUD/USD remains consolidated in early Asia, with markets open again after the long weekend for the final sessions before the New Year. Trade is expected to remain light with little in the way of scheduled events until the end of the week with non-manufacturing and NBS manufacturing PMI’s for December.

Commodity prices are volatile and have taken another turn to the downside at the start of this week. WTI fell at the start if this week to trade below $36bbl from recent highs of $37.31bbl. Copper buckled and fell below the 200 SMA on the hourly from over 2.12 down to lows of 2.0750 also weighing on the Aussie but now these losses are all consolidating with uncertainty and lack of volume

AUD/USD levels

Technically, AUD/USD is consolidating after dropping away from the 20 SMA on the hourly chart and being capped at 0.7280. To the downside, the key support might be located at the 200 SMA on the same time frame at 0.7211 where the 18th Dec resistance was located prior. Intraday rallies will look to test 0.7285 strong resistance. To the downside, below the 3-month uptrend at 0.7086, level wise, the 0.7017 November low and …read more

Source:: FX Street