The pair looked poised for a break higher this week, running up above the 0.6500 level as well as the 100-day moving average (red line) in trading yesterday. But despite bullish attempts by buyers to seal such a breakthrough, they are being dealt a massive technical blow today as we see price fall back below both key levels mentioned.
Not only that, the drop comes even after we saw better-than-expected employment numbers in Australia here earlier; albeit with some slight caveats.
In any case, the price action is the tell and the technicals suggest that the dollar is not down for the count just yet this week. Stronger risk appetite is still a tailwind for the aussie but if even everything else put together this week and the pair still can't crack above 0.6500, any reversal from here is likely to be a strong one as well I reckon.
It looks like we're heading back to the drawing board for AUD/USD.
