AUD/USD is consolidating around the 0.76 handle

AUD/USD has started the week around the 0.7600 level having recovered from the lows of 0.7553 and the bearish start to the month in the sell-off from 0.7670. It was a volatile end to the week with the flash crash in sterling while we awaited the nonfarm payrolls that has basically confirmed to most that November will not be the month that the Fed hikes, but overall it was a solid report and still leaves December on the cards once the election proves whether Trump gets in or not. However, after Friday's news and Trump's feminist comments, the odds have moved even further towards a Clinton victory and today's debate should be cinch for Clinton on the back of it all, a possible positive for the U.S. dollar. Other than the debate, there are no other events today.

AUD/USD levels

Analysts at Westpac suggested that daily momentum remains negative, a 0.7550-0.7650 range expected and offered a 1-3 month outlook as follows: " While further gains to around 0.77 are possible during the month ahead, driven in part by the faltering US dollar and yield-chasing flows, the AUD is losing energy (perhaps a reflection of its declining yield advantage). By year end, there's a case for a correction towards 0.74 if the Fed tightens in December as we expect. (13 Sep)."