AUD/USD Currency Pair Flashing Red – AUD Debt Misses Target

The AUD/USD currency pair hit the bearish track and consolidated in a tight range on the day, mainly due to the auction of Australian debt missing the target.
As of writing, the AUD/USD currency pair is presently trading at 0.6856, having hit the low level of 0.6844 in the early Asian trading hour.
Australian Office of Financial Management (AOFM), which controls the government’s debt, said a regular sale of A$1 billion of notes maturing on January 24 drew bids worth just A$936 million, for a bid-to-cover ratio of 0.9263.
Australian debt normally carries strong demand and unusually has a bid-to-cover ratio of 1, because it carries a top triple-A credit rating.
So, the Australian Dollar is showing resilience. The bullish trend is capped around 0.6855, mainly due to the unexpected weaker Australian Servies PMI data for October which released at 22:00 GMT. The gauge came in at 50.8, against the forecast of 52.2. Meantime, the Manufacturing PMI released at 50.1 against 49.0 expected.
AUD/USD may take a strong buying if the United States durable goods orders data releases well below the expected figures, which is scheduled for 12:30 GMT.

Daily Support and Resistance
S3 0.6806
S2 0.6827
S1 0.684
Pivot Point 0.6849
R1 0.6861
R2 0.687
R3 0.6891
AUD/USD – Trade Idea
AUD/USD violated 23.6% Fibonacci retracement level at 0.6850 and has formed bearish candles below this level. Besides this, the bearish channel on the 2-hour chart is also keeping the Aussie bearish.
AUD/USD has already crossed below 50 periods EMA which is now extending sell bias for the AUD/USD at 0.6850. On the lower side, 38.2% Fibo levels of 0.6820 remains the target now.
Good luck!