AUD/USD moves back to test its 100-hour moving average
The pair is posting a fresh session low of 0.7139, testing its 100-hour MA (red line) @ 0.7142 currently as the dollar keeps firmer to start the session.
The 100-hour MA is a level that has held the downside move since the start of the week and will be a key focal point in the sessions ahead. Stay above that and the near-term bias remains more bullish but break below and the bias then turns more neutral.
On a break under the 100-hour MA, further support is seen closer towards 0.7113-16 next.
There isn't much driving the gains in the dollar to start the day but US futures are keeping a little lower, so that's one factor to consider.
As for the Fed yesterday, they pretty much kept the punch bowl full so in the context of the bigger picture, that doesn't necessarily bode well for the greenback.
For now, keep an eye on the technical picture but unless sellers seize near-term control across multiple dollar pairs, it is hard to argue that the narrative has significantly shifted.
Stretched positioning in the euro is also a factor to consider in that regard.
Besides that, month-end flows are also starting to be more of a factor over the next few sessions but also keep an eye on yen pairs as Treasury yields continue to nudge lower.
The Fed pretty much gave the green light for yields to carry on their downward trajectory and that may give the yen a further boost and drag other currencies lower as well.
