AUD/USD is trading flat at around 0.6537 currently
The pair got a decent nudge higher in overnight trading to a high of 0.6585 but that came undone as we saw a late fall in US stocks, dampening the risk mood in the market.
As such, buyers failed to hold a break above the 30 April high @ 0.6570 into the close.
Hence, that is the key upside level still in play to limit gains in the pair at the moment.
Price action is still holding above the 100-day MA (red line) @ 0.6503 and that as long as that remains the case, buyers will still have conviction to be chasing a move higher.
That remains the key line in the sand that sellers need to cross in order to drive some downside momentum back towards the key hourly moving averages at around 0.6482-88.
AUD/USD continues to be largely driven by risk sentiment and so far the mood is a little bit more mixed with European stocks struggling a little while US futures are keeping a tad higher on the session. E-minis are up by around 0.5% at the moment.
The current mood in the latter should prevent a more meaningful drop in the pair for now but just be mindful that the aussie itself has its own problems to worry about.
Tensions are growing between Australia and China and that will offer some headwind for the aussie to consider if the situation escalates moving forward. But if anything else, I would argue that such a divergence will be more evident in a pair like AUD/NZD.