AUD/USD Bears eyeing a break below 0.7600 amid risk-off

The offered tone behind the AUD keeps growing bigger this Wednesday, now pushing AUD/USD closer towards 0.76 handle.

AUD/USD reverses China PMI-led gains

Currently, the AUD/USD pair now drops -0.42% to fresh session lows of 0.7613, having faced fresh supply near 0.7650 region. The Aussie extended its overnight downward spiral and came under fresh selling pressure post-China open as risk-off intensified amid latest poll results showing that Trump got the lead in the US presidential elections race.  The CBOE Volatility Index, the "fear gauge" of near-term investor anxiety hovered near 2-month highs, which indicated risk-off at full steam.

Moreover, reports that the Australian fiscal outlook has deteriorated since 2015-16, also weighed down heavily on the local currency. While broad based sell-off across the commodities space also collaborated to the downbeat momentum seen behind AUD/USD.

Looking ahead, markets will continue to monitor developments surrounding the US elections and its impact on the broader market sentiment ahead of the US jobs report and FOMC decision due later in the NA session.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7650 (psychological levels) 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 0.7600 (daily S1). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7550 (round figure) and below that at 0.7534 (200-DMA).