AUD/USD deflates from highs, back to 0.7660

The upside momentum in the Aussie dollar has lost some traction in the vicinity of the 0.7700 handle in early trade, prompting AUD/USD to return to the 0.7660 area.

AUD/USD now looks to US data

The greenback seems to have regained some buying interest during the European afternoon, motivating the risk-associated assets to surrender part of the initial advance, although spot remains well bid in the 0.7660 region for the time being.

The pair is posting its second consecutive day with gains so far today, managing to reach multi-day tops near 0.7700 the figure albeit losing some momentum soon afterwards.

Next of relevance for the pair will be the US docket, with the S&P/Case-Shiller index, the CB’s Consumer Confidence and Services PMI gauged by Markit, all ahead of the speech by FOMC’s VP S.Fischer.

Regarding speculative positioning and according to the latest CFTC report, AUD net longs clinched the lowest level since early July during the week ended on September 20, with both longs and shorts decreasing by around 15K contracts.

AUD/USD levels to watch

At the moment the pair is gaining 0.29% at 0.7658 facing the next hurdle at 0.7695 (high Sep.27) followed by 0.7736 (high Sep.8) and then 0.7757 (high Aug.10). On the flip side, a breakdown of 0.7600 (low Sep.26) would aim for 0.7578 (20-day sma) and finally 0.7492 (100-day sma).