AUD/USD: upside back in favour, looking beyond the 0.80 handle?

Currently, AUD/USD is trading at 0.7944, up +0.14% on the day, having posted a daily high at 0.7950 and low at 0.7930.

AUD/USD has continued on the bid since last week's sell-off in the US dollar and yields when the Aussie recorded a near to six-day high before the weekend.  "A move above $0.7970 signals not only a test of the earlier high but another leg up toward $0.8150-$0.8250," argued analysts at Brown Brothers Harriman.

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Meanwhile, the data is light for the Aussie ahead and markets will instead be looking to the nonfarm payrolls event as the next major catalyst for the pair. "We forecast a 205k increase in nonfarm payroll employment for August with 200k from the private sector and a 5k contribution from government," explained analysts at Nomura.

AUD/USD levels

Valeria Bednarik, chief analyst at FXStreet explained that in the 4 hours chart, the upward potential also seems limited, as technical indicators lost upward strength and head modestly lower, holding however, above their mid-lines, whilst the price settled above an horizontal 20 SMA. "August 17th high at 0.7962 is a key resistance level for the upcoming days, as a break above it could see the pair extending up to 0.8000 and beyond, although gains above this critical level will likely be unsustainable," Valeria noted.