Attempt to go higher fizzles out.
The AUDUSD moved higher after the new home sales data handily beat expectations. However, sellers in stocks, and in the AUDUSD has returned. The rally fizzled out.
Technically, the pair is down for the 4th consecutive day today. That move came after a sideways move last week. The high this week was on Monday at 07323. The low price this week was today at 0.70154. The range of 307 pips is in sharp contrast to the 89 pip range for all of last week (non trending). Non trending transitions to trending, and this week has seen the pair trend to the downside.
Todyay, the price initially moved higher in the Asian session but fell into the London morning session. Traders have created a swing high ceiling at 0.7054 intraday. The high after the new home sales fell short of that target (reached 0.7047). The price is trading at 0.7022.
The low for the day reached 0.70154 so far today. Below that sits the 100 day MA at a nice round 0.7000 level. That level should give seller cause for pause, with stops on break below.
The move to the downside this week has been supported by increasing expectations of a RBA rate cut at their next meeting.
The US stocks continue to be VERY volatile. The Nasdaq index has whipped from negative, to positive, to negative, to now positive again (in big chunks on the moves too). Gold is down -$4.10 or -0.22% - trading in a $20 range between $1848 and $1868 today.
