AUD/USD: Bears guarding 0.7640 barrier

The AUD/USD pair continues to move back and forth in a 20-pips narrow range, unperturbed by a slightly upbeat Chinese PMI report, as risk-off trades weigh on the investors’ sentiment.

AUD/USD tracks risk trends

Currently, the AUD/USD pair trades -0.05% lower at 0.7631, re-attempting a break above 0.7640 – key daily resistance. The Aussie extends its consolidative mode in late-Asia as the risk currency continues to suffer from risk-off trades amid negative equities as well as oil prices.

While a tad firmer Chinese manufacturing PMI data failed to lift the sentiment around the AUD/USD pair. China Sept Caixin manufacturing PMI stood at 50.1, matching expectations vs 50.00 last. China is Australia’s top trading destination.

Nothing of note for the major, in terms of macro news, until the NY session and hence, the major will continue to track broader market sentiment for further momentum.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7652 (5-DMA) above which gains could be extended to the next hurdle located at 0.7711 (3-week high/ daily R1) and 0.7736 (Sept 8 high). On the flip side, the immediate support located at 0.7605 (50-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7580 (20-DMA) and below that at 0.7562 (daily S2).