The AUDUSD moved lower in the Asia-Pacific session after weaker core inflation in Australia tamed some of the fears of a rate hike next week when the Reserve Bank of Australia meets.
The subsequent low price extended to a swing area between 0.6475 and 0.6486 where buyers entered (see red number circles on the chart below). More recently, the US employment cost data as helped to push the dollar lower (the AUDUSD back higher) and we’ve seen a snapback rally in the AUDUSD back toward the broken 61.8% retracement of the move up from the April low at 0.65283.
If the price can now move above that level – and stay above – will have traders looking toward the cluster of technical levels including the 50% retracement at 0.65797, the 200-day moving average of 0.6587, and the 100 day moving average at 0.6603. Stay below the 61.8% and the buyers have bottomed the pair, but not winning.
For the NZDUSD, it bottomed on Monday around four pips shy of the 2024 low-price. That gave the buyers the go-ahead to push higher.
After getting above the 100 hour moving average, the price has continued the move higher in up-and-down fashion today. Recently, the price has extended above 200 hour moving average (green line on the chart below) at 0.5929. That was the first time above that level since July 12.
Stay above that level tilts the short-term bias for traders in the favor of the buyers with the 38.2% retracement of the move down from the July high at 0.5970 as the next key targets.
This article was written by Greg Michalowski at www.forexlive.com.
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