The aussie had a bit of an odd situation in trading yesterday, where it caught a wild bid all the way from 0.6070 to just above 0.6180, likely caused by some liquidity air pockets.
But ultimately, the move faded and moved back under the 100-hour MA (red line) as sellers wrestle back some near-term control. And now, that remains the key line in the sand that is limiting gains in trading today. The 100-hour MA currently sits @ 0.6124.
The aussie is keeping higher on the back of a more positive mood in oil as well as US futures but it isn't really doing much to hint at a firm upside break against the dollar.
As such, the near-term price action for AUD/USD remains somewhat trapped between the 100-hour MA @ 0.6124 and the 200-hour MA (blue line) @ 0.6039 currently.
There needs to be a break on either side of the moving averages before we can see buyers or sellers start to take some element of control to drive the next key directional move.
Further upside resistance is also still seen around 0.6200 while there is also added downside support around the 0.6000 handle.
Looking ahead, it is a question to US traders as to whether or not the optimism in futures can be sustained amid ongoing economic worries surrounding the virus outbreak.
European trading continues to be more tepid as we look for any reaction to the US weekly initial jobless claims report later at 1230 GMT as well.
As such, aussie gains may be fleeting if we do see the risk mood slump later in the day and that should reinvigorate dollar bulls but more work needs to be done as highlighted above.
On the flip side, even if the risk mood keeps up for the better, aussie buyers also have to try and work their way back above the 100-hour MA to set up a retest of the 0.6200 level.