AUD/USD: Weaker, eyes 0.77 on China CPI, Trump lead

The higher-yielding currency AUD extends its retreat from multi-month highs against the US dollar, now pushing AUD/USD closer towards 0.77 handle.

The Aussie came under fresh selling pressure after the Chinese CPI came in below estimates on monthly basis, while on y/y basis just matched expectations.

However, the main catalyst behind the latest down move is the US elections led jitters, as the latest exit polls results show Trump in the lead, which weighs heavily on the market sentiment and crushes the demand for risk currencies such as the Aussie.

According to the latest projection by the NY Times, Trump has won 60 electoral votes. Clinton has 44 so far. Moreover, most news agency now project Republicans to retain majority in the House of Representatives.

AUD/USD: Technical levels:

Key Resistances: 0.7772 (daily high), 0.7800 (round figure), 0.7835 (daily S2)

Key Supports: 0.7700 (round figure), 0.7653 (Nov 7 low), 0.7603 (100-DMA)