AUD/USD buyers not letting up just yet
The daily candle yesterday seemed a bit ominous for the pair as it fell back below 0.7500 and also below the September high of 0.7478. But buyers are showing some added poise on the day as price is up 0.5% to just above 0.7500 currently.
The high yesterday at 0.7547 may pose some resistance but the key upside level to watch will be the 200-day moving average (blue line) at 0.7561.
Looking at the near-term chart:
Buyers are also somewhat defending the 100-hour moving average (red line) as they have been over the past few weeks, so the near-term bias keeps more bullish for now.
Sellers will have to push back below 0.7470 to see the bias turn more neutral instead.
From a fundamental viewpoint, higher commodity prices amid the inflation narrative and better risk sentiment are two key factors underpinning the aussie.
However, the Fed and RBA policy divergence is also a key consideration that may limit AUD/USD gains in the big picture.
As such, AUD/JPY may perhaps be a better bet for any major upside continuation in the aussie, especially if the pair manages to keep a break above the 10 May high of 85.80.