AUD/USD bulls contained by risk-off and hawkish FOMC

Currently, AUD/USD is trading at 0.7655, down -0.06% on the day, having posted a daily high at 0.7665 and low at 0.7652.

AUD/USD is consolidating the business for November between 0.7612 and 0.7688 while markets are nervous ahead of nonfarm payrolls after todays FOMC of which statement has opened the door for a December hike from the Fed, presumingly depending on the US elections next week. 

Key event: US election panel

Meanwhile, don't miss our US election panel with expert guests, Adam Button and Martin Armstrong, hosted by FXStreet's Ross Burland. 

The FOMC left rates on hold at 0.25-0.50%, as widely expected, although this time the vote was 8-2 with only George and Mester dissenting. There was lots of repetition in the statement, but the statement said that there has been some further evidence that a case for rate hike has continued to strengthen while inflation has increased some what since earlier this year. The general feel is that economic conditions will evolve and near term risks to the economy appear balanced. Markets are pricing in a 78% chance of a rate hike this December.

Full statement Fed decision: Nov 2, 2016

Meanwhile, for the day ahead and domestically, we have the Aussie trade balance and the focus will be on exports which analysts at Westpac suggested will potentially return to surplus in the coming months for the first time since March 2014, benefiting from the spike in coal prices. 

AUD/USD levels

AUD/USD key resistance is located at 0.7700/60 where bulls have struggled since August. To the downside, the 2016 uptrend is located at 0.7536 and a close below here is needed to undermine the range bound trading which has dominated the chart for the past 3 months, according to analysts at Commerzbank. "Above 0.7755 would introduce scope to the 0.7836 April high and this remains viable. It remains bid while above the five month support line at 0.7550."

Meanwhile, current price is 0.7655, with resistance ahead at 0.7656 (Hourly 20 EMA), 0.7660 (Weekly High), 0.7661 (Daily Open), 0.7665 (Daily High) and 0.7680 (Yesterday's High). Next support to the downside can be found at 0.7652 (Daily Low), 0.7647 (Daily Classic PP), 0.7627 (Hourly 200 SMA), 0.7623 (Weekly Classic PP) and 0.7622 (Hourly 100 SMA).