AUD/USD is higher on the day but the near-term bias is still more neutral
Amid the more positive risk tone in the equities space, the aussie has nudged a little higher on the session as we see AUD/USD climb to a high of 0.6474 earlier before backing off.
Notably, buyers tried to test a break above the 200-hour MA (blue line) @ 0.6463 but sellers defended the first key test of the near-term level - for now at least.
The market continues to brush aside the negative rhetoric from US-China relations, as stocks are still trading higher on the day and that is underpinning the aussie.
Looking ahead, caution is certainly warranted though as fresh headlines from Trump or other US officials could still sour the trading mood later on in the day.
In any case, the near-term technical bias in AUD/USD also isn't quite favouring buyers yet.
Price action is caught in between the key hourly moving averages so the bias is now more neutral. Sellers are defending the 200-hour MA while buyers are looking to try and maintain a break above the 100-hour MA (red line) to chase a more bullish near-term bias.
The last few sessions have purely been a risk-off or risk-on trade in the currencies market and the closing stages of the week should be no different in that regard.
For now, risk is maintaining a more positive momentum in European morning trade but as we saw yesterday, it may not necessarily hold up until the day end.
Back to AUD/USD, the technical levels will give a good indication of that and for now, buyers haven't quite solidified their case for an upside break just yet.
Beyond the 200-hour MA, there's still resistance at 0.6469-76 next before the 0.6500 handle.
As for sellers, moving back below the 100-hour MA @ 0.6426 will be the first key step before attempting another challenge of support at around 0.6374.
