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AUD/USD challenges 0.9400

FXstreet.com (Edinburgh) -The bearish sentiment intensifies around the Aussie dollar on Friday, pushing the AUD/USD to a test of the 0.9400 handle.

AUD/USD clings to 0.9400

The better momentum of the greenback is now gathering traction, weighing on the risk-associated assets and high-beta currencies against the backdrop of prevailing risk aversion in the broader markets. Emmanuel Ng, Strategist at OCBC Bank, commented, “Expect the AUD to remain a function of a soft dollar and improved global risk appetite levels. The pair may however continue to consolidate ahead of the 0.9500 area and may base build around current levels in the near term. Further downside support is expected on dips towards 0.9400”.

AUD/USD levels to watch

The pair is now retreating 0.32% at 0.9410 and a breakdown of 0.9393 (high Sep.16) would aim for 0.9379 (23.6% of 0.8891-0.9530) and then 0.9343 (MA10d). On the upside, the next resistance lies at 0.9511 (38.2% of 1.0583-0.8848) followed by 0.9524 (high Sep.19) and finally 0.9530 (high Sep.18).

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