AUD/USD clings to highs near 0.7680, risk-on persists

Having peaked at 0.7685 levels in the Asian early hours, the AUD/USD pair continues to waver in close proximity to the daily highs as FBI Clinton’s clearances-led risk-on trades remain supportive.

AUD/USD looking to test 0.7700?

Currently, the AUD/USD pair now trades marginally higher at 0.7679, with any downside attempt cushioned near 5-DMA support located at 0.7675. The Aussie staged solid recovery in Asia from a dip to 0.7660 region and now remains at higher levels, as risk-on persists in full swing amid rising treasury yields and oil prices, following FBI clearances of Clinton’s emails again.

However, upside appears to lack follow-through as markets remain wary over Wednesday’s US presidential elections’ outcome as both Clinton and Trump are tied almost neck-to-neck for the US presidential elections victory.

Moreover, mixed Australian macro news released earlier on the day, also adds to the stalled momentum seen behind the major. The Australia ANZ job ads for October came in at +1.0% m/m versus prior -0.3%. While the Australian construction PMI dropped sharply to 45.9 in Oct versus 51.4 last.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7699 (Friday’s high) above which gains could be extended to the next hurdle located 0.7709 (Oct 26 high) and 0.7739 (3-week highs). On the flip side, the immediate support located 0.7642 (10-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7609 (Nov 2 low) and below that at 0.7538 (200-DMA).

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