AUD/USD: 2-way business circa 0.70, key level at 0.6980

By FXStreet FXStreet (Bali) – AUD/USD remains highly volatile around the 0.70 handle, with decent 2-way business being conducted amid risk-off conditions were aggravated since the kick-off of the Tokyo session.

While sellers continue to push the pair lower, in line with the strong downtrend context the pair trades, solid bids keep emerging sub-70s with today’s low at 0.6988 seeing a rejection as high as 0.7008 in a matter of minutes, in a session with no Asian risk events in the calendar. Other than monitoring volatile risk dynamics, traders have now shifted the focus to today’s US NFP.

AUD/USD levels to watch

The point of control intraday appears to be at 0.7022/25 area, implying that while below this level, any buys are a very risky endeavor. That said, the stubbornness of the 0.70 level to be cleanly broken suggests a period of distribution/profit taking ahead of the NFP risk event. Stop loss orders continue being reports sub 0.6980, with a break below allowing the next target at Day S2 pivot at 0.6950 ahead of 0.6915 Day S3 pivot.
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Source:: FX Street