- Rising tensions in the Korean Peninsula after N.Korea successfully tested its sixth nuclear bomb keeps demand subdued for high-yielding assets.
- Disappointing US labour market report (Fri) dents Dec Fed rate hike expectations, weighing on sentiment around the US dollar.
- AUD/USD opened with a bearish gap in the Asian session.
- The pair has since edged higher after taking support at 5-DMA at 0.7943. We see weakness only on break below.
- The pair is trading a symmetric triangle pattern and triangle breakout could provide direction.
- Bearish divergence on Stochs keeps scope for downside. Break above 0.80 handle could negate bearish bias.
- Reserve Bank of Australia’s (RBA) monetary policy decision, followed by Governor Lowe’s speech, due Sept 5th will be in Focus.
- Also, due on Wednesday is the country’s Q2 GDP which will provide further direction.
Support levels - 0.7943 (5-DMA), 0.7911 (20-DMA), 0.79 (rising trendline), 0.7891 (23.6% Fib of 0.80656 to 0.73285 fall), 0.7848 (50-DMA)
Resistance levels - 0.7961 (weekly 200-SMA), 0.7995 (Aug 30 high), 0.80 (trendline)
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