AUD/USD on the edge as key support levels come into focus

The changes are light in the new day but the antipodeans are slightly lagging in the major currencies space. It’s not so much the dollar but perhaps some light softness in the yuan is also weighing. In any case, it is bringing into focus some key technical levels for AUD/USD right now.

Looking to the daily chart above, the pair has been dragged down recently to test its 200-day moving average (blue line). The key level is seen at 0.6628 currently. Adding to that, there is also some support from the September low at 0.6622 nearby. That makes for a key support region, which sellers are looking to chew through currently.

For now, they are slowly testing the waters with price action holding just below that ahead of European trading.

Hold a daily break below that and there will be more momentum for sellers to chase further downside action next week. But keep above and buyers will still stay in the game, hoping for a rebound with the dollar having cooled in the past day.

There won’t be any direct catalysts for the pair before the weekend. So, the risk mood and bond market will be key spots to watch in case for any spillover plays. Otherwise, it’s over to the technicals above to settle the score right now.

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