AUD/USD: settled in under the 0.78 handle, China's services to spark price action?

AUD/USD is currently trading at 0.7776 with a high of 0.7778 and a low of 0.7770.

Disappointing retail sales and dovish comments from a member of the central bank's board pushed the Aussie over the edge and lead to the currency's losing streak for a fourth consecutive week last week. 

"The Aussie finished the week with two consecutive losses below $0.7800 for the first time since the first half of July," analysts at Brown Brothers Harriman noted, adding,  "its recovery ahead of the weekend was minimal. Resistance is seen in the $0.7780-$0.7800 area."

The week ahead, preview of key scheduled data-events - Nomura

As per the calendar, Sep Caixin services PMI is released after printing at 52.7 in Aug. "While the national non-manufacturing PMI jumped 2.0pts last week to 55.4, note that the composition of the Caixin survey differs due to a larger weight of small/medium businesses," explained analysts at Westpac.

Their view on the price for the day ahead:

The downside remains vulnerable, targeting 0.7710 (30 June peak) next, as long as the US dollar’s recovery continues.

AUD/USD 1-3 month:

"If the RBA remains firmly on hold, as we expect, and the US dollar rises on delivery of a Fed interest rate rise in December, then AUD/USD could fall to 0.76 by year-end," the analysts at Westpac added.

AUD/USD levels

0.7710 (30 June peak) is now in view. A break here opens 0.7684, the previous 2016-2017 resistance line. Reversal attempts would struggle on the wide at around the 55-DMA and key resistance, 0.7920.

"The daily chart shows that the risk remains towards the downside, as technical indicators resumed their declines within bearish territory", explained Valeria Bednarik chief analyst at FXStreet.

"According to the 4 hours chart, the risk is also towards the downside, as the price settled further below bearish moving averages, whilst technical indicators hover near oversold readings, with no aims of changing course," Valeria added.

AUD/USD: Remains under pressure