AUD / USD bullish attempts remain capped below 0.7145 / 60

• AUD / USD bounces and stalls below 0.7160.
• The Australian dollar cuts losses as the dollar retreats.
• The pair remains trapped between 0.7100 and 0.7160.

The Australian dollar held above 0.7100 after a weak performance on Monday and the pair managed to erase losses on Tuesday, although bullish movements remain limited below the 0.7145 / 60 area.

Australian dollar rises with USD retreating

The Aussie has taken advantage of the USD’s pullback, amid a slight improvement in market sentiment following a strongly risk-averse session on Monday. US equity markets entered positive territory after a moderately negative open, with durable goods orders and US home prices posting larger-than-expected increases.

Prior to that, Speakers from the Reserve Bank of Australia provided some support for the AUD. RBA Lieutenant Governor Debelle tiptoed on the issue of further monetary easing, stating that the impact of COVID-19 on Victoria will be less than expected.

The positive reaction, however, has been short-lived. Concerns about the global increase in coronavirus cases and uncertainty over the US elections keep traders in a cautious mood, reluctant to hold long-term positions.

AUD / USD stalled between 0.7100 and 0.7160

From a technical perspective, the Aussie remains neutral, stuck in a range between 0.7100 and 0.7145 / 60. On the upside, a confirmation above 0.7160 (Oct 23 high) would have to extend above the SMA (50-day SMA) at 0.7195 before heading to 0.7235 (Oct 12 high)

On the downside, below 0.7100 (Oct 23-26 lows and 100-day SMA), the bearish momentum could increase and push the pair towards 0.7025 (Oct 20 low) and 0.7000 (Oct 25 low). September).