US dollar lower. Stocks lower. Bond yields lower too.
The AUDUSD has not escaped the lower USD trend after weaker than expected data out to the US (and some technical breaks).
For the AUDUSD, the pair broke below the 38.2% of the move up from the May low to the May high at 0.7445. The break has taken the price to the 100 bar MA on the 4-hour chart (see chart above) at the 0.74277 level. The 50% of the May trading range is at 0.74229. Yesterday, both those level were broken but the break failed. Last week the low stalled near both levels. Needless to say, the area is a key level.
In favor of a break is that yields are moving back lower and stocks are starting to look more tarnished (Nasdaq down -30 points). The data was not too great today. Geo-politically, Trump is taking US alone with his withdrawal from the Paris climate accord. Going alone does not make for happy international relations. It also may further polarize the political situation in the US too.
