AUD/USD: bears very stubborn at the 0.78 handle

Currently, AUD/USD is trading at 0.7780, up 0.02% on the day, having posted a daily high at 0.7781 and low at 0.7776.

There was a better risk tone across the markets and previous sessions, including Monday's Asian session where risk assets were generally buoyant and sparked some carry trade demand. AUD/JPY moved up to 87.76 from an opening level around 87.35 yesterday. In early Asia on Tuesday, the cross is starting out at 87.42 having traded within a range on the 87 handle between 24/78. 

AUD/USD traded to 0.7790 in Asia on Monday before sellers returned to cap price action. London's high was 0.7798, meeting the  Oct 6 high. The bears are also ready to pounce at 0.7820, 23.6% of 0.8105 (Sept 20 top) to 0.7733, and something that potentially dominated the market for the NY session as there were demand and risk on sentiment there also ultimately taking the higher betas higher. 

AUD/USD met 0.7795 at the start of the NY session on Tuesday when Wall Street rallied, although the robust and stubborn offers capped the commodity currency once again; Subsequently, profits were booked until 0.7775 support - closing 0.7778.

We have Westpac-MI Consumer Sentiment today in the Tokyo open that was last at 97.9."Pessimists have continued to outweigh optimists with pressures on family finances offsetting a recent run of jobs growth," argued analysts at Westpac. Asia will also bring minor Chinese monetary figures.

AUD/USD 1 day: 

The strategists at Westpac only see some consolidation between 0.7750 and 0.7800 following a 5% fall over the past month and a recent stall in the USD.

AUD/USD levels

Valeria Bednarik, chief analyst at FXStreet explained that the 4-hour chart shows that the price settled a few pips above a still bearish 20 SMA, whilst technical indicators barely entered positive territory before losing upward strength, indicating that buying interest is still limited around the commodity-related currency.

Meanwhile, other technicals remain bearish below the declining 50 4hr SMA at 0.7807 and below the cloud for the 4th day in a row. A break of 0.7733 opens risk to 0.7710 as the 30th June peak. There is scope for  0.7684 on continued supply as being the previous 2016-2017 resistance line. Reversal attempts could struggle on the wide at around the 50-DMA around the key resistance at 0.7920.