The pair is finally looking to snap a run of six straight days of gains, with price down 0.5% to 0.6534 on the day. It comes after a softer retail sales data earlier here, which crushes the train of thought that the RBA might have gone back to rate hikes. The softer Chinese PMI data here also isn’t really helping with the overall mood.
After having run up to test its 100-day moving average (red line) yesterday, price action is being kept in check as sellers hold the line there. That level is seen at 0.6583 currently. Right now, we’re seeing price retreat back but still holding above its 200-day moving average (blue line) of 0.6523. As such, price action is caught in the range between those two levels on the week.
It will come down to a break on either side to provide the next meaningful technical move in AUD/USD. And we might not get to that until the Fed tomorrow perhaps.
Looking at the near-term chart:
The 100-hour moving average (red line) is also starting to draw near, now seen at 0.6529. Keep above that and buyers will remain in near-term control. But break below and the near-term bias switches to being more neutral instead.
The latter will invite a push back towards 0.6500 next potentially, although the daily close will be one to watch amid the 200-day moving average at 0.6523 as highlighted previously.
This article was written by Justin Low at www.forexlive.com.