AUD/USD touches a high of 0.7093 on the day
The aussie was weighed sharply lower earlier today as RBA's Bullock raised concerns about Sydney home prices and iron ore futures took a tumble after Vale was given permission to open back one of its major iron ore mines in Brazil. AUD/USD fell to a low of 0.7057 but since then it has been a steady climb higher for the pair.
Right now, price is moving up to challenge a break back above the 100-hour MA (red line) as buyers are looking to seize back near-term control.
There are light offers seen at 0.7100 but the resistance region around 0.7110-20 will be a key level to watch out for in any upside move. Buyers are continuing to struggle to keep price above those levels as the fundamental backdrop for the aussie continues to look rather sluggish and uncertain.
However, positioning data is something that has worked for the currency in the past and is something to consider here as well. With price sitting near 0.7000 and no further catalyst to drive it below that, it's hard to justify traders looking to add to shorts from current levels.
I reckon price could sit around the 0.7100 handle as we gear towards the FOMC meeting decision later and the event will provide the next directional move for the pair this week.
