August 06, 2024 at 04:12PM
The AUDUSD moved higher after the RBA rate decision where Gov. Bowman said that the board did discuss a rate hike and would be willing to take rates higher if the inflation continues. That fundamental view pushed the AUDUSD above its 200-hour moving average (green line in the chart below) but momentum could not be sustained. The downside bias seen over the last few weeks is proving to be hard to break.
Fundamentally, China is slowing, the stock markets have been volatile and lower which contributes to a risk-off sentiment. The AUD is traditionally a risk-off currency.
Technically speaking, getting back above the 200-hour moving average – and staying above – is needed to shift the bias more to the upside. Absent that, traders will look toward the 0.6475 – 0.6486 swing area to get to and through. If done, that would increase the bearish bias.
There are other levels in play which I outline in this video.
This article was written by Greg Michalowski at www.forexlive.com.
