AUD/USD rejected at 0.7650, drops to fresh lows

The recovery in the US dollar appears to gain traction in the Asian hours, sending the AUD/USD pair sharply lower, as sentiment sours somewhat amid lower oil and stocks.

AUD/USD eyes 5-DMA at 0.7599

Currently, the AUD/USD pair trades -0.16% lower at fresh session lows of 0.7631, eyeing for a test of NY low reached at 0.7627. The Aussie extends its retreat from nine-day tops largely on the back of strengthening US dollar across the board, as the greenback attempts recovery from FOMC-induced heavy losses. The USD index gains +0.13% to 95.43, reversing a brief dip below 95 handle.

Moreover, a profit-taking slide in the Asian stocks and commodities’ prices after the recent strength, is also taking a toll on the AUD/USD pair. Poor risk conditions curb the demand for higher-yielding currencies such as the AUD.

Nothing of note for the major in the day ahead, and hence, attention turns towards next week’s US data releases, including the durable goods and GDP figures, for fresh momentum.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7691 (Sept 6 high) above which gains could be extended to the next hurdle located at 0.7715 (daily R2 and 0.7750 (psychological levels). On the flip side, the immediate support located at 0.7595 (5-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7544 (10-DMA) and below that to 0.7527 (100-DMA).