Narrow ranges all around the FX market, but AUD/USD quietly inches higher
Although the pair is only trading within a 26 pips range for the day, it's just 4 pips off the highs at 0.7870 currently.
This morning's business survey data was mildly positive, and that at least doesn't hurt the aussie sentiment for the time being.
Anyway, on the daily chart, the pair's recent bounce from the 100 and 200-day MAs is now running into some resistance levels sitting between 0.7875 and 0.7900. This will be a key test for buyers, to see if the recent run up isn't just fueled by short-covering instead.
There are a couple of big risk events as I highlighted yesterday for the pair, so be on the look out for that over the next few days.
And as mentioned then, do keep in mind that on Friday we have a large option expiry for the pair sitting at 0.7850 - currently the size is AUD 2.6 billion.
Onto the hourly chart, it tells the same story as we have the 200-hour MA (blue line) sitting at 0.7881 and that's providing yet another resistance level for buyers that they need to break above.
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