AUD/USD hits fresh session peak ahead of US manufacturing PMI

A fresh bout of US Dollar selling pressure seems to have emerged in the past hour of trading, with the AUD/USD pair building on to RBA-led strong gains.

Currently trading near session peak level around 0.7675-80 region, the pair extended its bullish momentum led by upbeat Chinese manufacturing PMI print for the month of October and RBA's decision to leave its key benchmark interest rate unchanged. Today's better-than-expected Chinese manufacturing data eased concerns of an economic slowdown in the world's second largest economy. Meanwhile, neutral policy stance dashed hopes of immediate easing by RBA and extended support to the bid tone surrounding the major. 

Traders now look forward to the release of US ISM manufacturing PMI for immediate respite for the US Dollar. However, investors will remain focused on Wednesday's FOMC decision, where although the Fed is not expected to announce interest-rate hike but is anticipated to provide fresh insight over possibilities of such an action in December. This week's US economic calendar also features the release of one of the most keenly watched US economic indicator, monthly jobs report, popularly known as NFP and is known to generate substantial volatility in global financial markets. 

Technical levels to watch

From current levels, 0.7700 handle, closely followed by 0.7709 (Oct. 26 high), are likely to act as immediate resistance above which a fresh leg of up-move seems to assist the pair beyond October monthly high resistance near 0.7735 level, towards its next major resistance near 0.7755 region (August monthly highs).

On the downside, 0.7650 now becomes immediate support, which if broken is likely to accelerate the slide immediately towards 0.7610 support area before the pair eventually breaks through 0.7600 handle and dart towards 100-day SMA support near 0.7575-70 region.