Aussie buyers are not throwing in the towel just yet

Technical Analysis

Author: Justin Low | audusd

The AUD is the best performing major currency on the day

European stocks are in the black, but it's not the main reason why the aussie has outperformed today. Other major currencies have gone back and forth on the day as the dollar move in the European session helped to mix things around a little, but the aussie remains resilient.

At the moment, buyers are still looking poised to make another run at the 0.7900 against the dollar - despite the failed move to get above it yesterday. It's something that was highlighted a couple of days ago here.

The high today comes at 0.7895, and as Mike pointed out here, there will be decent offers lurking at 0.7900 again.

I don't see anything on the option front today, but for me, the support level for AUD/NZD is what is helping to prop up the aussie today. The pair tests the 61.8 retracement level at 1.0717 again - a level which has held for the last 7 trading days - and bounces back up again.

We had some comments from RBA's assistant governor for financial markets earlier in the day to help underpin the aussie as well, but the support level for AUD/NZD has been a crucial level for the aussie recently and as long as that holds, the aussie should be supported still for the time being.

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