AUD/USD has gotten off to an awful start to the year, with the pair sinking 0.6800 all the way down to below 0.6600 in trading this week. The low yesterday tested the December low before seeing a bounce and buyers are now looking to take advantage of that. The mood is helped by a rebound in risk sentiment on the week, with S&P 500 futures extending gains to 0.4% now. That at least is helping to overshadow the China worries for the aussie at the moment.
AUD/USD daily chart
The rebound now sees price push above the 200-day moving average (blue line) of 0.6579 and is also contesting a push back above the 100-hour moving average at 0.6590 on the day. The latter will be a key spot to watch as a break above that will signal a shift in the near-term bias in the pair after three weeks of bearish sentiment mostly.
It is a key technical moment for the pair now as we look to wrap up the week as it could be alluding to a potential rebound in price action moving forward, despite AUD/USD still looking to end the week down by over 1%.