And in the case of AUD/USD, it keeps the retreat from 0.6900 at the end of last week going as price now slips back under the 0.6800 mark:
AUD/USD daily chart
The Chinese yuan is significantly weaker today, as USD/CNY rises up from 7.18 to near 7.22 and that is weighing on aussie and kiwi sentiment. On the latter, even a stronger Q2 CPI report here earlier isn’t doing the job.
And generally speaking, even the better mood in the equities space is failing to provide much of a lift to risk currencies on the week.
Going back to AUD/USD, the pair is in a bit of a bind right now with near-term levels also caught in the middle. Price action is sitting in between its 100 and 200-hour moving averages at 0.6834 and 0.6763 respectively.
A break back above the former will still see key resistance close to 0.6900 from the highs in June and earlier this month. Meanwhile, a break below the latter will start to invite further downside pressure back towards the 200-day moving average of 0.6711 next potentially.