AUD/USD got a nudge from 0.6875 to a high of 0.6903 on the headline
And price action is now settling around 0.6880-90 levels as we see stocks also pull back some of the knee-jerk reaction to the earlier headline by China.
The DAX is now down 0.3% after having raced up to 0.7% gains upon the headline release.
But for AUD/USD, buyers have managed to nudge back above the 100-hour MA (red line) @ 0.6879 after a bit of a struggling battle earlier in the day to try and keep above that.
The aussie did get a nudge lower on the softer Australian labour market report, which pulled AUD/USD to 0.6838 but ran into some near-term support around 0.6841.
For now, the near-term bias is keeping more neutral after the nudge higher as buyers wrestle back some control. But that isn't anything suggestive of any turnaround yet.
The 200-hour MA (blue line) @ 0.6916 is still sitting above current levels and that is the one to watch in case buyers try to push the agenda for any further upside extension.
The overall risk situation remains rather choppy despite the headline but that could perhaps be a bit of a preview of things to come if we do see US states report better coronavirus numbers than the last two days.
