The AUD/USD pair edged higher during the Asian session on Wednesday and recovered a part of the previous day's sharp fall to multi-day lows. The dismal market mood benefitted the safe-haven US dollar and exerted some heavy pressure on the perceived riskier Australian dollar. The greenback, however, lacked any strong bullish conviction amid fading hopes that Congress would pass the fiscal stimulus bill ahead of the November 3 presidential election. This, in turn, was seen as one of the key factors that assisted the AUD/USD pair to snap two days of the losing streak.
This makes it prudent to wait for some strong follow-through buying before traders start positioning for the resumption of the recent positive move from 100-day SMA support, around the key 0.7000 psychological mark.