With its recent break to new highs, AUD/USD has been looking more constructive.
However, longs will likely have to sit patiently before new peaks are set again.
Indeed, amid a global bond-yield slide, Australian market rates are falling faster than those in the U.S. Therefore, the greenback is maintaining its yield advantage for now.
Meanwhile, weakening equities and falling commodity prices are souring risk and giving the safe-haven Yen a boost.
This in turn is depressing AUD/JPY and the ripple effects are being felt.
Thus, AUD/USD longs will need improved risk sentiment and a relative pick-up in Australian yields to reinvigorate an advance.
Once those bullish factors return, short-Aussie position unwinds are likely to accelerate underpinning the pair.
Bulls can then attempt to overwhelm the key 0.7445/85 resistance zone where August and July monthly highs as well as the 38.2 percent Fib of 0.8136-0.7021 reside.
A break above there can then put the 0.7575/00 and 0.7675/00 zones in play.
chart: Click here