AUD/USD: bears eye a test of the double bottom lows in the 0.7620's

• AUD/USD awaits key data events in Oct Caixin manufacturing PMI/FOMC.
• AUD/USD under pressure with both US yields and iron ore pressuring.

AUD/USD came under pressure again overnight, pressured by US yields that were stable with the 10yr treasury yields moving between 2.36% and 2.38%, while 2yr yields rose from 1.57% to 1.59%. Iron Ore prices slipped by 2% yesterday and broke below trend support today, further pressuring the Aussie. While markets are getting prepared for the FOMC tomorrow and major risk events between now and the end of the week, for today's Asian session, Aussie traders will be monitoring the Caixin China Mfg PMIs and should they come below expectations, the downside is wide open for 0.7620 double bottom target. Currently, AUD/USD is trading at 0.7659, up 0.03% on the day, having posted a daily high at 0.7663 and low at 0.7654.

Analysts at Westpac offered a preview in a snapshot of the key data events and their outlook for the Aussie:

• China: Oct Caixin manufacturing PMI is out with the official measure coming in slightly lower than expectations yesterday.
• US: The FOMC policy decision is widely seen to be on hold with the statement likely to confirm expectations of a December hike. Oct ISM manufacturing is expected to edge back to 59.4 from 60.8 with the index particularly elevated relative to other manufacturing measures.
• AUD/USD 1 day: The pause in the US dollar’s two-month old rise should allow the AUD to take a breather between 0.7600 and 0.7700.
• AUD/USD 1-3 month: If the RBA remains firmly on hold, as we expect, and the US dollar rises on delivery of a Fed interest rate rise in December, then AUD/USD could fall to 0.76 by year end. (5 Oct)

AUD/USD levels

• Support levels: 0.7650 0.7610 0.7580
• Resistance levels: 0.7690 0.7730 0.7775

Valeria Bednarik, chief analyst at FXStreet noted that AUD/USD is holding near the three-month low set last Friday at 0.7624: "The 4 hours chart shows that the risk is towards the downside, as in the 4 hours chart, the price is below a bearish 20 SMA, while technical indicators turned south, the Momentum still around its mid-line, but the RSI currently at 39. Further declines below the mentioned low should favor a steeper slide towards the 0.7450 region during the upcoming days, a major long-term support," Valeria noted.

AUDUSD: Remains under pressure on Wednesday