AUD/USD bounces with S&P 500 futures, still remains below 0.7150

• AUD/USD attempts a bounce in tandem with S&P 500 futures.
• Sept China’s Industrial Profits data caps the uptick in the aussie.
• All eyes on RBA speakers and COVID-19 stats for fresh impetus.

After a down day on Monday, AUD/USD showed some signs of life above 0.7100 in Tuesday’s Asian trading. Although, the major continued to trade in a familiar range between 0.7100-0.7150.

The spot attempted a bounce tracking the uptick in the S&P 500 futures amid risk-recovery following the rout in the equities overnight, courtesy of the growing fears about the coronavirus resurgence and the likely lockdowns in key euro area economies.

The latest leg higher is also backed by a broad-based US dollar retreat amid risk reset. Meanwhile, higher gold prices also aid the recovery in the resource-lined aussie.  

Despite the renewed strength in the major, it remains to be seen if it can defend the bids, in the wake of the negative sentiment on the Asian equities. Further, a deceleration in the Chinese Industrial Profits to +10.1% YoY for September when compared with August’s +19.1% could also weigh on the aussie’s upside.

Next of note for the pair remains the speeches by the Reserve Bank of Australia’s (RBA) policymakers due on the cards later on Tuesday. Meanwhile, US durable goods and consumer confidence data will be closely eyed along with the global COVID-19 stats.

AUD/USD technical levels

To the upside, stiff resistance at 0.7136 (20-DMA) needs to be taken out for a test of the 50-DMA barrier at 0.7193. The support is aligned at 0.7103 (Monday’s low), below which the daily classic S2 at 0.7078 could be tested.

AUD/USD additional levels