AUD/USD rejected at 10-DMA, revisits daily lows

The AUD/USD pair faces double whammy in the Asian session and surrenders most gains amid risk-off market profile.

AUD/USD heading towards 200-DMA at 0.7515

Currently, the AUD/USD pair trades modestly flat near daily lows of 0.7546, unable to chew offers lined up at the 10-DMA barrier of 0.7563. The Aussie defends gains as markets remain risk-averse and refrain from creating long positions in higher-yielding currencies such as the AUD.

Risk-off grips Asia in wake of the travel ban executed by the US President on Friday, which stoked fears over global political turmoil and curbed the demand for risky assets, as investors seek safety.

However, the sentiment around AUD/USD remains somewhat buoyed amid broad based US dollar weakness and tumbling treasury yields, which appear negatively impacted by Trump’s protectionism and poor US growth numbers.

Moving on, we have busy week ahead, kicking-off with today’s core PCE price index data, followed by the FOMC decision, China manufacturing PMI and US payrolls data lined up later this week.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7600 (round figure) above which gains could be extended to the next hurdle located 0.7631 (Nov 11 high) and 0.7650 (psychological levels). On the flip side, the immediate support located at 0.7515/06 (200 & 20-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7475 (100-DMA) and below that 0.7446 (Jan 13 high).