AUD/USD turning south back below 0.80 handle, where next?

Currently, AUD/USD is trading at 0.7995, up 0.64% on the day, having posted a daily high at 0.8030 and low at 0.7942.

AUD/USD has turned south as we progress through the US session, and had broken below the 0.80 handle while otherwise, the pair was bid on a spike from 0.7970 breaking through 0.7995 double top resistance to the aforementioned highs. Commodities and a weak US dollar were the catalysts for the move while geopolitical tensions continue to mount around N.Korea.

Meanwhile, the RBA remained on hold and are in no hurry to hike interest rates.

RBA is in no hurry to raise rates - Nomura

"We expect no change to the cash rate over 2017 and 2018. The RBA did note the improved outlook in non-mining investment, but continues to highlight the headwinds to consumption from the mix of high debt and low wage growth," explained analysts at Nomura. 

AUD/USD levels

Analysts at Commerzbank explained that AUD/USD is holding over the 3-month uptrend at 0.7896:

"Below the uptrend lies the 0.7808 current August low, which guards good support at 0.7748/41. It is where the February and March highs are located and while above here the market will remain bid."

On the bid, the analysts at Commerzbank noted that above the 0.8065 level, the 0.8162/66 May 2015 peak and 50% retracement can be seen. "Above there lies the 0.8295 January 2015 high," they added.