AUD/USD erases gains, falls toward 0.7650

AUD/USD has been falling during the last  hours, retreating from 0.7680. Recently it dropped to 0.7652, after the release of US economic data.

The pair failed to hold to gains and currently is trading at 0.7652/56, at the same level it close on Friday. The short-term momentum now favors the downside as the price is back under the 20-hour moving average.

To the downside support is seen at 0.7650, followed by 0.7640 (daily low) and 0.7600 (Sep 26 low). On the opposite direction, resistance could be located at 0.7680 (Oct 3 high), 0.7700 (psychological) and 0.7730 (Sep 8 high).

Data ahead

Data in the US, showed that the ISM manufacturing index rose back in expansion territory, as it climbed to 51.5 (against expectations of a reading of 50.3), up from August’s 49.4. The Markit’s Manufacturing PMI has also followed and rose to 51.5 in August.

The key report in the US during the current week will be on Friday, with the US employment report. In Australia, the key session would be on Tuesday, with the decision of the Reserve Bank of Australia.