The AUDUSD moved lower yesterday after the post-CPI run to new highs going back to June 5 stalled and reversed into the close.
The selling pressure carried into today’s session as the pair broke below both the 100-hour moving average at 0.70598 and the 100-day moving average at 0.7055
Sellers then pushed down toward the 200-hour moving average at 0.7045. Although the price briefly traded below that level by a pip, the break could not be sustained, and the pair quickly rebounded. More recently, the broader risk-on environment has provided some support for the Australian dollar.
US equities are moving higher, with the Nasdaq up 1.03%, the Nasdaq 100 up 1.35%, and the S&P index trading at a new record high. At the same time, Treasury yields are moving sharply lower, with the 2-year yield down 6.7 basis points and the 10-year yield down 7.1 basis points. That combination has helped fuel renewed buying in the AUDUSD.