With the anxiety back in the equity markets with US stocks down and European stocks also lower, AND US yields higher, there is not a lot of "risk off" going on.
The AUDUSD is moving higher today. Usually it might react with a "risk off" flow to the downside on day's like today. HMMMMM>
Looking at the hourly chart, the price has now moved above the 38.2% retracement of the move down from the January high. That level comes in at 0.6666. The current price is trading at 0.66708 after trading as high as 0.66805. The price is also above swing levels down to 0.6659. That level (0.6659) would now be close risk for buyers intraday. Stay above and the buyers remain more control. Move below we could see some rotation back to the downside in this pair.
On the topside, the swing high from January 26 near 0.6700 would be the next upside target followed by the 50% midpoint of the 2022 trading range at 0.6709.
Yesterday RBA's Lowe said that the central bank is prepared to be patient and that they don't need to move in lockstep with others and that they are committed to full employment. Those comments - in a rising rate environment in the US (UK, and more so in the EU today as well)- should support the USD, and weaken the AUD, but it has not.
For a look at all off Lowe's comments CLICK HERE
So watch the levels. Listen to the market. Define your risk. Look for the targets to either be breached or fail.
Right now, staying above 0.6659 in the short term keeps the buyers more control with an eye toward 0.6700 to 0.6709 above....
