• AUD/USD below 0.7100 traders can expect more selling pressure.
  • Stimulus talks eyed, USD is trading strong due to safe-haven bids.
  • 0.7045 support level in play.

AUD/USD trades near the session low around 0.7100 during the Asian trading hours today. The start-of-the-week weakness follows the up-move in the previous session to a seven-day high around 0.7157.

The pro-risk Australian dollar is on the back foot as the haven-linked US dollar gained on the growing economic worries as the pandemic second wave hit many countries. The stalemate in the US fiscal stimulus discussions and presidential elections are also worrying the market participants.

The optimistic remarks from the US House Speaker Nancy Pelosi regarding the Republican response to the stimulus bill failed to cheer the market. Traders are pricing in a lower chance of a stimulus deal before the US Presidential elections as it faces strong opposition in the senate.

AUD/USD might continue its fall before hitting 0.7045 support as the sustained selling below 0.7100 has encouraged the bears. A break below the support will challenge the psychologically important 0.7000 in play.

The economic docket is light with only New Home Sales figures as important releases ahead; the broader market risk sentiment, US stimulus headlines and the pandemic would be determining the action in the day ahead.

At 8:40 UTC time, the AUD to USD exchange rate was seen trading down -0.26% at 0.7115.