AUD/USD – stuck in a range ahead of Presidential debate

The battle between the bulls and the bears continues restricting the AUD/USD to a narrow range of 0.76-0.7660 levels ahead of the first of the three Presidential debate in US.

Aussie relatively resilient to risk-off

AUD has remained range bound for the last two days despite growing concerns regarding the banking sector in Europe. There is increasing feeling that German lender Deutsche Bank would require a government bailout, which has been officially ruled out by Chancellor Merkel.

Investors are nervous since Deutsche Bank and the situation in the European banking sector closely resembles the banking crisis in US in 2007/08.

The immediate focus now is on the first Presidential debate between Trump and Clinton.

AUD/USD Technical Levels

Break below previous day’s low of 0.7602 would open doors for 0.7585 (weekly pivot), under which next major support is seen at 0.7534 (Sep 21 low). On the other hand, a breach of resistance at 0.7638 (daily low) could yield 0.7675 (Sep 22 high) and 0.77 (zero figure) levels.