AUD/USD struggles with 0.7700 nemesis

AUD/USD remains better bid on at three day winning streak for the month of October so far from end of September lows of 0.7589.

RBA: another rate cut is not off the table - Commerzbank

However, the break of 0.7695/00 resistance in the up trend from 0.7442 and 12th Sep lows was short-lived and advances are yet to offer conviction above the 0.77 handle. We had some better data today from the U.S. that will hold up further advances in the absence of further data ahead of the RBA. "The RBA meeting on Octoberon October 3, which is the first that Governor Lowe will preside. While rates are on hold, Lowe might express some frustration with the Aussie's strength. The failure to do so would likely embolden the bulls," explained analysts at Brown Brothers Harriman. We also have a number of Fed speakers who might be able to shake things up a bit while November and December meetings are still very much in play. Fed speakers stacked up this week - UOB

AUD/USD levels

Analysts at UOB Group explained that the decline appears incomplete, but 0.7605 is a major support and a significant move below this level appears unlikely (next support at 0.7575). "AUD registered a ‘bearish outside day' and this does not bode well for our bullish view. However, confirmation is only upon a break of 0.7605. From here, AUD has to move and stay above 0.7670 or the downside risk would continue to increase."