Technical Analysis

AUD/USD buyers cling on to near-term support, not down for the count just yet

AUD/USD is trading mildly higher on the day currently

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The pair was trading more tepid to start the day, before the aussie was brought lower alongside the kiwi on the RBNZ decision earlier, sending AUD/USD to a low of 0.6451.

Despite moving below the 200-hour MA (blue line), buyers leaned on the near-term trendline support around 0.6450 before pushing back higher and more importantly back above the 200-hour MA, currently @ 0.6463.

That means the near-term bias remains more neutral for now as price action and the battleground rests in between the key hourly moving averages.

For sellers, it is key to maintain price below the 100-hour MA (red line) @ 0.6499 and the 0.6500 handle to keep the downside pressure going.

The 100-day moving average – today @ 0.6528 – has also been a key level for sellers to lean on and will be one to watch in case buyers start to take a peek above 0.6500.

The overall risk mood remains a key factor driving the pair this week, with equities not faring too well amid US-China tensions in general. But US futures are faring slightly better so far today, though there is reason to doubt the mild optimism as seen yesterday.

In terms of key risk events, Fed chair Powell’s speech will be one to watch later today before we get to the Australian jobs report tomorrow.

Australia-China relations are also looking a little shaky to be mindful of headlines on that front, like what we have seen with the beef imports ban from China yesterday.

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