AUD/USD bears running the show to test key support

By FXStreet FXStreet (Guatemala) – AUD/USD is currently trading at 0.6950 with a high of 0.6991 and a low of 0.6946.

AUD/USD continues on the offer and is now down to test territory at the first major support at 0.6940 while changing hands just above the midpoint of the handle currently. A break here exposes the 0.6905 recent lows. The sentiment and technical levels are leading the way on the downside with investors seeking safer havens away from risk.

We are light on data in Asia and will be turning to China for a likely confirmation of the downside in Global equities and a run-off from Wall Street and European bourses overnight. We will have further clues on the state of the Chinese economy this week when the nation will release the Caixn Manufacturing PMI’s along with NBS Manufacturing while a reading below 50 is expected in both cases in suit of the neighboring EM economies.

AUD/USD major event and levels

However, the main event for the week will stay with the Nonfarm Payrolls in light of the forthcoming FOMC meeting in October. The main target to the downside comes as the 0.6774 2004 lows while 0.7200 would alleviate immediate downside pressures.
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Source:: FX Street