There are two key technical points to focus on in AUD/USD at the moment but they involve charts on separate timeframes. So, let's get right into it. First, a look at the daily chart:
The pair is seen holding at daily support from the 38.2 Fib retracement level at 0.6855 and that is helping buyers to push back against the dollar gains post-Jackson Hole. That is despite the drop in equities in the past two days. So, the better risk mood today is now fueling a turnaround and we are seeing some notable developments in the near-term chart:
The rebound since yesterday was held by the key hourly moving averages but as we get into European trading today, we are seeing buyers make a play to push past that. As such, the near-term bias is now more bullish and we could perhaps see an extension back towards testing 0.7000.
As much as the dollar has given up some ground after Jackson Hole, I would still argue that the greenback is in a good position overall. There is little reason to opt to stay long in the euro and pound and against other major central banks, the Fed seems to have a stronger resolve - probably because they can dictate the landscape better.
The US jobs report on Friday will be a crucial litmus test for dollar bulls in building on the post-Jackson Hole move but for now, it looks like they are already being challenged back. In the case of AUD/USD, we could see that entire move be erased with key technical resistance only seen at 0.7000 at the moment.
