The pair broke both the August and early September lows in a drop to 0.6330 earlier this week, which was the lowest level since November last year. But amid a turnaround in sentiment and flows since yesterday, buyers are finding a new lease of life in a push back to 0.6478 currently.
The aussie is one of the better performers today as the dollar slumps alongside bond yields, while equities are finding added comfort from that to start European trading. S&P 500 futures are now up 0.4% currently.
That being said, despite the solid rebound, the pair is still finding itself in a bit of a pickle as it returns back to the consolidation phase as noted here earlier in the week.
The 0.6500 mark remains the most critical technical level that buyers need to break through in order to really convince of a stronger turnaround in momentum in the bigger picture. For now, they are still lacking in that department. And so, the push and pull continues.
The only difference is that AUD/USD has survived another "death trap" this week on a break below the August and September lows. But when you draw a trendline support with those, perhaps that was what buyers were counting on amid a turnaround in sentiment on the week.
