Up and down volatility
AUDUSD has moved to a new session lower in the current time bar (rising higher as I type). The decline has cracked below a lower trendline on the hourly chart below, but finds support against a swing area between 0.72102 and 0.72153. In this area is also the midpoint of 50% of the range since the low on August 20.
On the upside on Powell’s early comments, the pair broke through weekly highs and an upper channel trendline (in the 0.7264 to 0.72751 area). The uptrend stalled at 0.72897 and turned lower.
US yields have continued to climb, which helps the dollar. The 10-year is at 0.740%, up 5.2 basis points. The 30 year olds up 7.5 basis points to 1.489%.
To counter this move (especially for the risk on the targeted AUD), stocks are trading near high levels. The S&P is up 21 points to 3500 (0.62% gain – first time above the 3500 level), while the Nasdaq is up 53 points or 0.46% 11,718.92. The Dow Industrial Average has broken above its 2019 closing level and is trading positively for the year. The closing level for 2019 is 28,538.44. The index is currently trading at 28,601, up 268 points or 0.94%.