AUD/USD: on the bid, fundamentals supporting before US elections

AUD/USD is trading at 0.7683, up 0.31% on the day, having posted a daily high at 0.7689 and low at 0.7637.

AUD/USD is up on the weakness on the greenback as Trump continues to offer uncertainties in the elections and markets are nervous of a Black Swan type of scenario, similar to Brexit. Stocks tumbled, risk is off and gold rallied, supporting the Aussie on the back of a narrowing trade deficit and an uptick in the Chinese service PMI to 52.4 in October from previous 52.0. Also, the weaker US dollar plus high iron and coal prices are underpinning the AUD, according to analysts at Westpac who are  targeting a break above 0.7690 today towards 0.7735. NExt we await nonfarm payrolls - a non event ahead of elections, or an opportunity to fade USD strength on a positive number? 

AUD/USD levels

"AUD/USD 1-3 month: While further gains to around 0.77 are possible during the month ahead, driven in part by the faltering US dollar and yield-chasing flows, the AUD is losing energy (perhaps a reflection of its declining yield advantage). By year end, there’s a case for a correction towards 0.74 if the Fed tightens in December as we expect," - Westpac

Meanwhile, the current price is 0.7684, with resistance ahead at 0.7688 (Weekly Classic R1), 0.7689 (Daily Classic R1), 0.7689 (Daily High), 0.7718 (Daily Classic R2) and 0.7722 (Monthly High). Next support to the downside can be found at 0.7680 (Yesterday's High), 0.7671 (Hourly 20 EMA), 0.7661 (Daily Open), 0.7660 (Weekly High) and 0.7651 (Daily Classic PP).