AUD/USD approaches a test of the 100-hour moving average
The pair is lingering at session lows of 0.6809 currently and is approaching a test of the 100-hour MA (red line) @ 0.6807. In overnight trading, buyers failed to firmly break above the 200-hour MA (blue line) and that is keeping sellers in the game.
As things stand, the fundamental driver is arguing for a weaker aussie but ultimately, we're still yet to hear of any official communication on how trade talks are progressing.
The US camp is keeping up their "all is well" narrative while China is keeping mum for the most part over the past few weeks.
The latest news on the HK bill merely presents a higher hurdle to try and get a "Phase One" deal done but it doesn't mean that it is off the table just yet.
That said, the longer this keeps up, the more nervous and anxious markets will feel. That could in turn weigh on risk assets further.
For AUD/USD, there's also some bids and minor support just below the 100-hour MA closer to 0.6800 with the near-term trendline support seen at 0.6793 offering another area for buyers to lean on in case things go south in the coming sessions.
