AUD/USD touches a high of 0.7374 on the day
Risk sentiment is getting better in the market as Chinese stocks are trading at the highs now heading into the close. That is also going to provide additional support for European equities on the day when they open later, and for now risk assets are moving higher.
The dollar and the yen remain on the back foot and the aussie is one of the bigger beneficiaries on the day. The PBOC governor's pledge to keep the yuan stable certainly didn't do any harm either.
AUD/USD tested the 9 May low @ 0.7329 earlier and moved below but sellers are yet to sustain a daily close below the key support level and that is providing a sort of base for AUD/USD over the last two days.
The near-term chart tells a better story of what is happening today as buyers have managed to break back above the 100-hour MA (red line) and if the break holds, that will end the near-term bearish sentiment in the pair for now.
And that will give the aussie some reprieve in the short-term. But resistance lies nearby in the form of the 200-hour MA (blue line) @ 0.7383 and the 0.7400 handle as well as Friday's high @ 0.7416.
Those will be key upside levels to watch out for if the pair marches higher, and those will be levels where sellers will lean on to carry on the downside momentum in the bigger picture.