AUD/USD back beneath 0.72 despite bidders’ best efforts

• The Aussie has let slip the 0.72 figure after Tuesday’s Dollar bid-up as markets continue to  remain tense across multiple fronts.
• Thine data in the mid-week will have plenty of market participants already bracing for Friday’s NFP action.

The AUD/USD is trading near 0.7190 after risk-off flows in Tuesday’s action took the Aussie down into 0.7160,   and despite a recovery from near-term lows the pair remains off of the week’s opening prices.

The US Dollar saw a resurgence of bidding across the broader market space, and the majority of G10 major currencies were forced down against the Greenback, with the AUD being no exception, losing the 0.7200 handle as risk aversion continues to remain close to the surface of skittish markets.

Broad-market sentiment remains a major driving force across the FX landscape for Wednesday, with US-China trade tensions remaining a key crippling point for the Antipodeans as traders fear continued fallout from trade wars impacting the Australian economy. Today sees Australian Building Permits numbers from July at 01:30 GMT, and median expectations are calling for a showing of 1.0% after the previous period’s -5.2% decline, while USD traders will be buckling down in preparation for another round of Non-Farm Payrolls due this Friday.

AUD/USD levels to watch

The Aussie’s technical  outlook remains to the bearish side, and according to FXStreet’s own Valeria Bednarik: “the pair pierced briefly the 61.8% retracement of the September rally to post a daily low of 0.7161, offering a bearish perspective according to the 4 hours chart, as not only the pair is currently developing below the 50% retracement of the mentioned advance, but also below moving averages, with the 20 SMA now about to cross below the 100 SMA, both now converging around 0.7220. Technical indicators in the mentioned chart failed to re-enter positive territory, with the Momentum now heading south at fresh weekly lows and the RSI indicator also heading south at around 39, in line with a bearish continuation toward fresh weekly lows.”

Support levels: 0.7155  0.7120 0.7075

Resistance levels: 07210 0.7255 0.7300