AUD/USD: Some near-term hope restored
The pair has been consolidating losses over the past few sessions but is finding a new lease of life as we are seeing risk bounce back today after the Fed announced unprecedented measures to backstop the US economy - effectively taking away credit risk from lenders and major corporations.
The dollar weakened on the back of the release with AUD/USD climbing higher to test the 100-hour moving average before gains backed off a little.
But the pair still ended the trading day mildly higher and is now pushing gains well above the 100-hour moving average as the near-term bias sits firmly in neutral territory.
This is giving buyers more confidence as they look towards testing resistance at 0.5963-85 before the 0.6000 handle comes into play.
For now, it is all about the dollar and risk after the Fed announcement yesterday.
The greenback is still keeping weaker across the board but dollar funding pressures are still evident in the market. As such, the battle will be between buyers and sellers on those two fronts.
For AUD/USD, the technical picture is clear. Move back below the 100-hour moving average and sellers regain control, move back above 0.6000 and the 200-hour moving average and buyers will start to build on a move higher with the short squeeze likely to a strong one.