AUD/USD in the bear's cage headed to below 0.7400?

AUD/USD has opened within the bearish formation from just above the 0.77 handle that reached recent lows of 0.7557 by the close of last week's business.

The greenback garnered some short lives strength across the board last week on the US GP Q3 data that beat expectations at 2.9% growth. However, when looking behind the headline, analysts at Westpac came to the following conclusions: Economic wrap: US GDP Q3 expectations can't be relied upon - Westpac

Meanwhile, the Aussie dollar has been tugged and pulled between poor jobs data and better than expected headline CPI data for the previous quarter while otherwise commodities have also been a previously supporting factor that may or may not hold up and focus will remain with the U.S. elections. US election polls are now narrowing: the Gop seized the day over new Clinton FBI investigation

AUD/USD levels

With the 200 dma at key support, at 0.7534 today,  Analysts at Westpac offered AUD/USD in a 1 day outlook:  "Neutral around 0.7600. Friday's fall in the US dollar is offset by negative equities sentiment."

The analysts added, AUD/USD in a 1-3 month contract: "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."