AUD/USD clocks fresh 2-week low, unimpressed by GBP/AUD sell-off

AUD/USD pair dropped to a fresh two-week low of 0.7561 as the currency failed to benefit from a sharp drop in GBP/AUD cross in Asia.

USD remains bid ahead of payrolls release

The American dollar remains on the front foot as upbeat manufacturing and services PMI numbers released earlier this week increased the odds of a better-than-expected non-farm payrolls print. Furthermore, Dec Fed rate hike bets spiked to above 60% this week, thus adding to the bid tone around USD.

Meanwhile, gold sell-off weighed over Aussie. Sterling suffered a flash crash in Asia, courtesy of which the GBP/AUD cross dropped to lowest since June 2013. However, that has not helped restrict losses in AUD/USD pair.

AUD/USD Technical Levels

The cross was last seen trading around 0.7568. Acceptance below yesterday’s low of 0.7562 would open doors for a drop to 0.7518 (100-DMA). On the daily charts we see that prices staged a solid rebound from 100-DMA support at least twice over the last three months. This makes 100-DMA a strong support, which if breached could yield a sell-off to 0.7427 (200-DMA).

On the higher side, resistance is seen at 0.7590 (session high) and 0.7606 (50-DMA). A break higher would opn up upside towards 0.7691 (Oct 4 high).