AUD/USD consolidating a freak spike to 0.7500

The AUD/USD pair is seen trading quite choppy below 0.75 handle so far this session, with the bulls trying another attempt to regain the last.

AUD/USD hovers around 20-DMA at 0.7484

Currently, the AUD/USD pair trades modestly flat at 0.7484, bouncing-off a brief dip to session lows struck at 0.7477 in the last hour. The Aussie lacks a clear direction and extends its 20-pips range trade into Asia, largely consolidating the solid recovery staged in the last US session.

Further upside in the major appears capped as markets trade on the back foot ahead of the OPEC meeting, which is expected to have significant impact on oil prices, and eventually on the resource-linked AUD.

Also, a downside surprise to the Australian building approvals data added to the cautious trading seen around the major. The Australian building approvals for October dropped 12.6% m/m versus expected +2.0% and prior -8.7%. While poor Chinese MNI consumer sentiment data combined with negative Asian equities also weighs on the risk-driven AUD/USD.

Later today, markets look forward to the US dataflow, especially the Fed’s favorite inflation gauge and ADP jobs report, while the OPEC decision is likely to hog the limelight.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7505 (Nov 17 high) above which gains could be extended to the next hurdle located 0.7540 (daily R2) and 0.7568 (50-DMA). On the flip side, the immediate support located 0.7468 (5-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7423 (10-DMA) and below that at 0.7358 (Nov 24 low).