AUD/USD sidelined at the start of the week, eyes on the US dollar

AUD/USD  is currently trading at 0.7953, between a range of 0.7951/61 and flat on the day. 

AUD/USD was in a recovery of the new lows made last week at 0.7908 following  Wednesday's Fed sell-off from the 0.81 handle. Weak gold below $1,300 psychological level also pressured and Asian cross-flow through an AUD/JPY -0.8% sell-off due to the N.Korean headlines were a weight as well.  

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AUD/USD subsequently made a recovery to 0.7986 in NY high, surpassing the European high of 0.7977, despite Dalian iron ore -3.5% in China and LME copper -1.3%. There was, however, a light recovery in electronic copper during the NY session that was supporting the Aussie late in the shift to trade between 0.7960/70 into the close. Eyes will stay on the greenback this week while there are no domestic events scheduled for the Aussie. China and metals will also be a driver.

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AUD/USD levels

Technically, 0.7908 is the September low scored in Friday's Asian shift while resistance comes in at around the 38.2% Fibo of the 0.8105-0.7908 (Sep low) at 0.7983 with stops piled up below 0.79 the figure. Daily and monthly technicals lean bearish with the daily cloud supporting, the price settled below a now flat 20 DMA and RSI diverging on the lows.