Both the aussie and kiwi are leading gains in the major currencies space, with the dollar keeping slightly on the softer side as we get into European trading. China’s intervention to defend the yuan today is a notable one that has helped with the risk mood, and mostly benefiting the antipodean currencies as such.
AUD/USD daily chart
That is making the AUD/USD technical picture a little messy I would say. The pair had looked like it was on for a break below its 100 (red line) and 200-day (blue line) moving averages in a drop below 0.6700 but has recovered strongly today.
Price is up 0.7% to 0.6715 and holding above the 100-day moving average of 0.6708 will give buyers some of the advantage back.
That said, there is still some resistance from the near-term chart with the 100-hour moving average seen at 0.6726. That will keep sellers interested in this push and pull battle.
But considering how risk tones have been looking softer ahead of month-end and quarter-end, there is a bias to stick with the downside momentum in AUD/USD. That unless the near-term picture starts to change up as well, as highlighted above.