AUD/USD rallied on risk appetite before US elections on turn around Monday

Currently, AUD/USD is trading at 0.7722, up 0.05% on the day, having posted a daily high at 0.7731 and low at 0.7718.

USD: FBI provides last minute boost for Hillary Clinton – MUFG

AUD/USD has rallied on turnaround Monday and around 24hrs to go until the outcome of the US elections. Trump is behind in the polls, but this could still be an upset for markets on a Brexit style surprise win and there remains an air of uncertainty despite the FBI's conclusions and Clinton in the clear. Gold on the other hand has tanked on the news.

However, commodities on a whole were caught up in the risk on mood and industrial metals were also swept up in the wave of buying, with nickel prices leading the gains, according to analysts at ANZ.  "Violent protests in Indonesia have raised concerns that supply of nickel (and other commodities) could be under threat of disruption. The improved economic data out of China also continues to support industrial metals demand. Iron ore surged higher on the back of higher steel and iron ore futures in China. Iron ore exports from Port Hedland jumped 14% y/y to 41.6 million tonnes, reflecting strong demand in China. 

Analysts at Westpac offered AUD/USD in 1-3 month outlook: "While further gains to around 0.77 are possible during the month ahead, driven in part by the faltering US dollar and yield-chasing flows, the AUD is losing energy (perhaps a reflection of its declining yield advantage). By year end, there's a case for a correction towards 0.74 if the Fed tightens in December as we expect."

AUD/USD levels 

"AUD/USD 1 day:  Broke above 0.7700 on the FBI news and targets the 0.7735-0.7750 area next (10 Aug peak)," suggested analysts at Westpac. 

Meanwhile, with spot trading at 0.7723, we can see next resistance ahead at 0.7731 (Daily High), 0.7746 (Daily Classic R3), 0.7768 (Weekly Classic R2), 0.7813 (YTD High) and 0.7813 (Annual High). Support below can be found at 0.7722 (Daily Classic R2), 0.7722 (Monthly High), 0.7722 (Weekly Classic R1), 0.7721 (Yesterday's High) and 0.7719 (Weekly High).