AUD/USD clings to gains above 0.8000, tracks Yuan higher
- DXY weakness, Yuan strength support.
- On track for the 6th weekly rise.
- Eyes on US data.
The bulls face stiff resistance near the four-month tops of 0.8023, with the AUD/USD pair now consolidating in a tight range well above the 0.80 mark, as markets await the sentiment on the European open for the next push higher.
AUD/USD headed to 0.81 handle
The Aussie remains well bid, mainly driven by the strong gains seen in the Yuan, especially after the Chinese currency rose beyond USD 6.4000 levels for the first time since Dec 2014. Moreover, the renewed weakness seen in the US dollar across its main competitors also collaborated to the latest leg up in the spot.
The greenback was left little impressed by rising Treasury yields and reports that the US House has passed the US government stopgap funding bill earlier today. The USD index drops -0.15% to 90.16, flirting with daily lows.
However, the bulls appear to face exhaustion over the last hours amid a sudden drop seen in oil prices during the Asian trades, which dampened the sentiment around the resource-linked AUD.
Markets also looked past the mixed Chinese and Australian macro news, as focus shifts towards the US prelim UoM consumer sentiment and Fedspeaks due later today for fresh USD moves.
AUD/USD Technicals
The pair finds next resistances at 0.8050 (psychological levels), 0.8072 (Sept 10 High) and 0.8102 (daily R3). Meanwhile, the supports are located at 0.7983 (5-DMA), 0.7930 (10-DMA) and 0.7878 (20-DMA).