AUD/USD: testing the 0.74 handle to the downside ahead of Debelle

AUD/USD was a sell-off overnight yet again with lower commodity prices and gold taking a hit while the US dollar climbed to the top of the leaders board once again.

The DXY took on the 96 handle and the Aussie hit as low as to test below the 0.75 handle for the first time since end of July's business. Fischer was yet again a catalyst advocating that the Fed hike rates. Meanwhile, we have RBA's assistant governor Debelle speak at the FX week in Asia. 

AUD/USD levels

Valeria Bednarik, chief analyst at FXStreet explained that the short term, the 1 hour chart shows that the price is well below a bearish 20 SMA, while indicators keep heading lower, despite being in extreme oversold levels. "In the 4 hours chart, the 20 SMA heads strongly lower, now converging with the mentioned broken trend line around 0.7570, while technical indicators continue heading lower, also within oversold territory, supporting some further slides towards 0.7450." With spot trading at 0.7514, we can see next resistance ahead at 0.7517 (Daily High), 0.7531 (Hourly 20 EMA), 0.7535 (Daily Classic S1), 0.7560 (Daily Classic PP) and 0.7582 (Yesterday's High). Support below can be found at 0.7511 (Weekly Classic S1), 0.7510 (Monthly Low), 0.7510 (Weekly Low), 0.7510 (Daily Open) and 0.7508 (Daily Low).