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FxWirePro: AUD/USD consolidates break below 20-DMA, Q3 CPI data in focus for further impetus

  • AUD/USD has reversed brief dip below 0.76 handle and has edged higher.
     
  • Aussie under pressure from ongoing weakness in the Yuan, after PBOC set yuan fix weaker, driving USD/CNY to fresh six-year highs.
     
  • AUD/USD hit lows of 0.7591, had made lows of 0.7587 on Friday's trade. 
     
  • Our previous call (http://www.econotimes.com/fxwirepro-aud-usd-tanks-after-poor-jobs-data-good-to-short-rallies-357651) has almost achieved all targets.
     
  • No relevant economic releases due on the cards today. Focus will be on speeches from Fed officials Bullard and Dudley.
     
  • Australia Q3 CPI data due 26th will be a major driver for further price action.
     
  • Technically, the pair has breached 20-DMA support and is consolidating around 0.76 handle.
     
  • We see downside intact till 20-DMA resistance holds. 
     
  • Major support levels - 0.7601 (50-DMA), 0.7559 (100-DMA), 0.7530 (trendline)
     
  • Major resistance levels - 0.7623 (20-DMA), 0.7645 (5-DMA), 0.7690 (Oct 18 high)

Techs are inconclusive, We prefer waiting on sidelines for clear indication to initiate trade.
 

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