The pair tracked lower in the first half of trading yesterday after the Melbourne lockdown news, testing support around 0.6925 before rebounding back towards the swing region around 0.6975-77 and then faltering again as US equities sagged into the close.
That gave sellers conviction to chase a move back under the 100-hour MA (red line) and is keeping the near-term bias more neutral at the moment.
There is still minor support around 0.6925 but the key downside level to watch in the pair will be the 200-hour MA (blue line) @ 0.6915. Break below that and sellers will seize back near-term control in the pair and search for a test of the 0.6900 level.
As for buyers, they have work to do in order to try and break back above the 100-hour MA @ 0.6946 and then aim towards the resistance region at 0.6975-77 before the 0.7000 handle comes back into play.
The latest headlines from Australia aren't too encouraging with Melbourne returning to lockdown and other states/areas stepping up more caution amid the virus situation.
That has taken some of the wind out of the sails for the aussie but the key factor driving AUD/USD remains that of US equities.
Futures are keeping closer to flat levels now after the drop yesterday, but just be mindful that we haven't seen a back-to-back fall in the S&P 500 since 10-11 June.
Dip buyers have always come to the rescue despite the choppy price action over the past few weeks, and the question is will we see the same again today?
For AUD/USD, the key hourly moving averages will do well to define the bias on the day before testing key levels on either side as pointed out above.