AUD / USD is currently trading at around 0.6537
The pair got a decent higher boost in night trading at a high of 0.6585, but this was canceled out as we saw a late fall in US stocks, easing the mood for risk in the market. .
As a result, buyers have failed to maintain the break above the April 30 high @ 0.6570 at the close.
So this is the key upward level still in play to limit the pair’s gains for the moment.
Price action is always maintained above the 100 day MM (red line) @ 0.6503 and that as long as this remains the case, buyers will always be convinced that they are continuing an upward trend.
This remains the key line in the sand that sellers must cross in order to bring some downward momentum towards the key hourly moving averages around 0.6482-88.
AUD / USD continues to be largely fueled by a sense of risk and so far, the mood is a bit more mixed, European stocks struggling a bit while US futures remain a bit higher on the session. E-minis are up about 0.5% at the moment.
The current mood in the latter should prevent a more significant drop in the pair for now, but just keep in mind that the aussie itself has its own issues to worry about.
Tensions are growing between Australia and China and this will offer a headwind for the Australian to consider if the situation deteriorates in the future. But if anything else, I would say that such a divergence will be more evident in a pair like AUD / NZD.