European equities move lower and is dragging down risk sentiment slightly
That is putting a bit of pressure in the likes of the aussie, kiwi and loonie at the moment. The aussie and kiwi in particular are hitting lows on the day against the dollar and the yen. AUD/USD now threatens a move to break below the 100-hour MA (red line) once again.
Most major European indices have pared their earlier gains while UK stocks are leading losses on the day as Brexit uncertainty continues to weigh with the confidence vote later still in focus.
For AUD/USD, support is seen in the region of 0.7175-85 but there's also further support from the 200-hour MA (blue line) @ 0.7170. The latter will be a secondary line of defense for buyers to defend the near-term momentum but it is looking more and more like sellers are slowly taking control and/or buyers are encountering some exhaustion in trying to hold a break above 0.7200.
US equity futures have also moved a little lower with E-minis now only up by 0.2% after earlier gains of around 0.4%. USD/JPY remains largely unaffected for now though with price sitting at 108.60 after recovering from 108.40 levels in the early morning.
