AUD/USD gets a check back after the RBA yesterday

The bottom line yesterday was that the RBA did not offer up a hawkish tilt for those hoping for one. But the central bank did keep the door open for rate hikes, if the data warrants for that in the months ahead. The aussie fell but not too much with AUD/USD holding just under 0.6600 for now. But that is still inviting a test of the 100-day moving average (red line) today:

The key technical level is seen at 0.6577 and will be one to watch as we look to the second half of the week. Keep above that and buyers will still hold some semblance of upside momentum. But break below and sellers will feel like they can try and search for a renewed downside leg.

Looking at the near-term chart though:

The price action is looking a bit more neutral currently. The pair broke below its 100-hour moving average (red line), so the near-term bias neither favours buyers or sellers now. There needs to be a break back above that or below the 200-hour moving average (blue line) to affirm a near-term bias next.

So, these levels will also be a factor alongside the 100-day moving average highlighted above.

As for the fundamental side of the equation, there won’t be much to work with for the remainder of this week. If anything else, the risk mood might be the one dictating the state of play. Otherwise, with yields also chopping around, the dollar might be in for more of a push and pull in the sessions ahead.

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