AUD/USD extends its decline as the dollar holds firmer still

AUD/USD H1 11-05

The aussie continues to back away from a challenge of its 100-day moving average against the dollar, as price now falls under 0.6500 to a low of 0.6486 in European trading.

Risk tones are shifting to be more pessimistic now as we see European stocks extend losses with US futures also down by about 0.5% on the day currently.

That is putting pressure on the aussie and underpinning the dollar so far today.

AUD/USD is now approaching support from its key hourly moving averages around 0.6473-76 and that will be a key area to watch out for in the session ahead.

Keep above that and the near-term bias stays more bullish. Break below and the near-term bias will then turn more bearish instead.

The market is certainly looking skittish today as wee see the flip flop in risk sentiment. But again, it was the same case when we approached the 61.8 retracement level for the S&P 500 index previously so that remains one of the key risk barometers in my view.

For some context:


That and the key daily moving averages will be key topside levels to watch if risk is to truly find conviction for a solid run higher this week. So, keep an eye out for that.