AUD/USD: upside stalling in recovery of the hawkish Fed speak

AUD/USD is currently consolidating the recovery from the 0.7583 lows that reached 0.7639 highs overnight, yet remains in a bearish channel from 0.7755 recent supply that capped the previous uptrend of late July business. 

AUD/USD is a story of Central Banks while the RBA have switched to an easing bias, the Fed could also be on the brink of changing their tone as well before the year is out, and that, despite recent hawkish comments from Fed speakers of late, is the word on the street, weighing the greenback and allowing the Aussie and gold to recover, albeit WTI taking a hit overnight.

Gold intermarket: will the dollar topple and send gold higher?

"The RBA's easing bias combined with the Fed's tightening bias should push the AUD lower towards 0.74 by year end, although recent BOE and BOJ easing have made the AUD even more attractive to global investment flows such that a test of 0.78 is possible first," explained analysts at Westpac.

AUD/USD levels

With spot trading at 0.7628, we can see next resistance ahead at 0.7640 (Daily Classic PP), 0.7642 (Yesterday's High), 0.7646 (Daily High), 0.7650 (Hourly 100 SMA) and 0.7659 (Weekly Classic PP). Support below can be found at 0.7627 (Daily Open), 0.7627 (Weekly Low), 0.7624 (Daily 20 SMA), 0.7623 (Hourly 20 EMA) and 0.7622 (Daily Low).  Looking to candlestick patterns, we can see a Doji formation on the 1-hour chart.