AUD/USD fades retail sales-led spike, hits daily lows

The AUD/USD pair faced rejection just shy of 0.77 barrier and gave up all of slightly upbeat Aus retail sales inspired gains to now trade muted near daily troughs. 

AUD/USD heads back towards daily pivot at 0.7669

Currently, the AUD/USD pair now trades marginally lower at fresh daily lows of 0.7675, moving further away from daily tops previously posted at 0.7697. The Aussie wiped-out gains and turned negative for the first time in five trading sessions, as resurgence of USD buying and steep losses in the Asian equities outweigh a slightly better Australian retail sales print.

The major came under fresh selling pressure as markets weigh the latest RBA quarterly monetary policy statement (SoMP), in which the central warned over rising housing market risks and its negative economic ramifications.

Looking ahead, focus remains on the US elections-related news flow and its impact on the broader market sentiment, while the upcoming US NFP report will be closely eyed for more clues on the US interest rates prospect for a Dec hike.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7697 (daily high) above which gains could be extended to the next hurdle located 0.7709 (Oct 26 high) and 0.7739 (3-week highs). On the flip side, the immediate support located 0.7657 (5-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7609 (Nov 2 low) and below that at 0.7536 (200-DMA).

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