AUD/USD: paring gains, back at 0.7060

By FXStreet FXStreet (Mumbai) – The AUD/USD bulls loosened their grip allowing for another 20 pip fall back to 0.7060 in the early US session.

Rejected at 0.7093

The spot turned lower from the high of 0.7093 seen earlier today. The USD has been on a slow comeback mode against the AUD and most other commodity currencies. The bid tone on the AUD had strengthened in the early European session, tracking the sudden spike in the offshore CNY against the USD.

Ahead in the day, the spot could continue to move in line with the overall market sentiment. At the moment, the US stocks are trading sideways to negative, offering little cues to the markets. Even the 2-year treasury yield, which mimics rate hike expectations, is trading dead flat around 0.74%.

AUD/USD Technical Levels

The immediate resistance is located at 0.71, above which the spot could target 0.7163 (Aug 31 high). On the other side, support is located at 0.7012 (hourly 200-MA) and 0.6983 (hourly 100-MA).
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Source:: FX Street