AUD/USD erases post-CPI advance as sellers wrestle back some near-term control

The pair is posting a slight double-top from the overnight high around 0.6245 and that is leading to a reversal in the past few hours. The fall now threatens a break below its 200-hour moving average (blue line). And in doing so, that will see the near-term bias switch back to being more neutral again. In essence, sellers are wrestling back some control on the near-term chart.

The aussie is struggling after the latest jobs report here. The employment figures were strong but the unemployment rate did creep higher, though perhaps owing to a tick up in the participation rate as well.

In any case, AUD/USD has pretty much erased its advance after the US CPI report yesterday. The pair climbed from just under 0.6200 to 0.6245 and is now trading back to around the former again. So, what’s next?

The pair might be trading higher this week, owing to gains in the past few days. But the pivotal level to watch is still the 0.6200 mark on the daily/weekly chart.

If sellers can keep below that, it will still keep the downside momentum running with eyes towards 0.6000 next at least.

Looking ahead, there will be more US data today to work through before the focus shifts towards Trump’s inauguration next week.

This article was written by Justin Low at www.forexlive.com.