AUD/USD: 0.77 handle under pressure as bears dominate

AUD/USD is consolidating below the 0.77 handle after dropping back from gold lead highs of 0.7748.

AUD/USD was firmer at the start of the US, despite the RBA minutes pointing to further weakness in the currency due to further easing by the Central Bank in time to come.

"At that meeting, the RBA cut rates 25 bp to 1.5%.  It noted “The risks associated with rising household sector leverage and rapid gains in housing prices had diminished.” The RBA also noted “considerable uncertainty” regarding growth and inflation, which leaves the door open to further easing," explained analysts at Brown Brothers Harriman, adding, "Next RBA meeting is September 6, no move is seen then since the RBA’s pace of easing this year has been modest (cuts in May and August).  The RBA noted that a stronger currency complicates the adjustment process, and so further AUD gains would make another cut in Q4 more likely."  Now it is all about the jobs report from Australia that arrives tomorrow after the FOMC minutes. 

AUD/USD levels

With spot trading at 0.7698, we can see next resistance ahead at 0.7698 (Hourly 20 EMA), 0.7699 (Daily Classic R1), 0.7702 (Monthly High), 0.7702 (Weekly High) and 0.7724 (Daily Classic R2). Support below can be found at 0.7693 (Yesterday's High), 0.7691 (Hourly 100 SMA), 0.7674 (Daily Open), 0.7670 (Hourly 200 SMA) and 0.7669 (Weekly Classic PP).