AUD/USD is currently challenging the 100-day moving average
Price is knocking on the door of key resistance levels with the first being the 100-day MA (red line) @ 0.7033. The close yesterday fell just short of that but buyers are still looking poised on the new day to keep pushing the issue so far today.
There are also light bids resting around 0.7050 but the more notable resistance levels to the upside are the trendline resistance from June last year, which rests at 0.7061, and the 200-day MA (blue line) @ 0.7098.
Both of these levels played a part throughout the year so far in limiting gains as seen during the 31 January and April highs pointed out above. As such, these will be key resistance levels that buyers must be able to break above in order to justify any further extension.
From a fundamental perspective, the RBA has said that the aussie is on the lower end of its expected range and with their latest statement giving room for a pause in rate cuts, perhaps that may help to alleviate some pressure off the currency for the time being i.e. traders looking for short covering.
However, domestic economic conditions remain subdued and with the global economic outlook still cloudy amid ongoing US-China trade tensions, it's hard to see how sustainable a run higher in the aussie can be.
That said, as a trader we can never really argue with what the charts are saying either and we'll always have to look at that before firming our view on any given currency. So, let's see if buyers can find enough conviction to break higher but I would be wary of gains if price starts moving towards 0.7200 or above from here.
Looking at the near-term chart, the risk for buyers is if price starts to move back below the key hourly moving averages between 0.6990 and 0.7003, as well as the 0.7000 handle.