AUDUSD Breaks Key Resistance But Struggling To Maintain It

The AUDUSD rallied overnight to a high of 0.6551, highest since September 23, on better risk appetite and a weaker USD driven by lower yields. But it fell back, as crypto headwinds drove a pullback in risk, and AUD is now trading just above 0.6500. AUD crosses generally finished the session in line with the previous close.

• Overnight AUDUSD broke through key short-term resistance of 0.6522 and also 0.6547, the October 4 high, strengthening the bullish case. But it couldn’t hold it and fell back to below 0.6500 before recovering back to that level. A break through November 3’s 0.6272 would reinstate the bearish threat.
• Equity markets were stronger across the board with the S&P 500 up 0.6%, the third consecutive rise, and the Eurostoxx +0.8%. The VIX finished the day almost a point higher at 25.4%. Oil prices were weaker with WTI down 3.2% and back below $90/bbl to $89.30 driven by fears of reopening delays in China after more Covid cases were reported. However metals were generally up with copper rising 1.7% as the market remains tight. Iron ore ticked up to just under $89.
• RBA Deputy Governor Bullock speaks at 20:05 AEDT on “The Economic Outlook”. The event can be viewed here. While that is all in Australia today, results from the US mid-term elections will be coming out through the day.