The Australian Dollar turned bullish during the first two weeks of this month, with the 50 SMA (yellow) acting as support on the H1 chart. But, the trend shifted last week, as China’s economic rebound was not as strong as many had expected. As a result, this pair fell below moving averages which eventually turned into resistance.
But, today during the Asian and European sessions both the AUD and the NZD were leading gains in the major currencies space, with the USD keeping slightly on the softer side. China’s intervention to defend the yuan today is a notable action that helped with the risk mood and mostly benefited the antipodean currencies as such. Although, after the impressive US data such as Durable Goods Orders, CB Consumer Confidence and New Home Sales which showed a decent jump the sentiment reversed and risk currencies have turned lower again.
That is making the AUD/USD technical picture on the H1 chart a little messy I would say. This pair fell below 0.6700 in the early morning, but recovered strongly during the European session. Although the 100 SMA (green) turned into resistance, rejecting the price twice. But the 50 SMA (yellow) turned into support, which has been holding the price.
AUD/USD gained around 0.7% as it climbed to 0.6715. But considering how risk tones have been looking softer ahead of month-end and quarter-end, there is a bias to stick with the downside momentum in AUD/USD. That is unless the near-term picture starts to change up as well, as highlighted above.
AUD/USD
Read More: AUD/USD Bouncing Between 2 MAs Today, on News from China and the US