It’s very much a return to yesterday for AUD/USD
Price is moving just above near-term resistance around 0.7129-32 and looks set to try and test key resistance levels that were pointed out in trading yesterday i.e. 100-day moving average and topside wedge resistance.
The daily chart continues to be the main focus of the pair in my view:
RBA Debelle’s comments failed to provide anything new but they weren’t as dovish as what traders were anticipating prior to that and the aussie gained some ground as AUD/USD also bounced off support from the 200-hour moving average.
Buyers are still in near-term control as price holds above both key hourly moving averages but topside remains limited and any further upside extension requires a break of key technical levels pointed out on the daily chart.
Risk sentiment is looking a little sluggish in Asian trading so far with equities slightly lower, mirroring the mood in Wall Street overnight but US equity futures are more or less flat on the session so far. Bond yields are holding a little lower, but it isn’t really providing much signals for currencies at the moment.
That could potentially keep the pair rangebound around levels seen yesterday and today so far in the sessions to come. Of note, just be wary that we’ll also have the FOMC meeting minutes set to be released in US trading later.