The dollar is softer across the board and amid a strong push higher in the Chinese yuan, the antipodean currencies are also capitalising on the greenback’s weakness. Both AUD/USD and NZD/USD are up 0.7% to 0.6550 and 0.6030 respectively, playing out in similar fashion on the charts as well with both pairs looking to secure firmer breaks above their respective 100-day moving averages.
AUD/USD daily chart
AUD/USD in particular has faced stubborn resistance near 0.6500 and the 100-day moving average (red line) stepped in earlier this month to aid with pinning buyers down. But finally, it seems like we’re coming up for air in a push to 0.6550 – the highest levels since August.
The next key stop will be the 200-day moving average (blue line) at 0.6591 next.
Given that the dollar is also faltering elsewhere, AUD/USD is poised to retest that key level and may even eye a stronger technical breakout if buyers can break down the barrier. Risk appetite is holding up alongside the Chinese yuan and if yields continue to retreat, that could spark a stronger rebound in the pair to pare back its decline so far this year.