AUDUSD dips back below 100 hour/100 day MA after ISM data

The AUDUSD has dipped (higher dollar) after the better-than-expected ISM nonmanufacturing data. Recall Fed's Waller put a disclaimer on his view for interest rates saying that if the economic data remains hot, he would favor higher rates. This nonmanufacturing index remains hot. The prices paid - although lower than last month - remained elevated at 65.6. New orders and employment also rose.

Th US 10 year yield Yield A yield represents the earnings generated by an investment or security over a certain time period. Yields are typically displayed in percentage terms and are in the form of interest or dividends received from it.These figures do not include the price variations, which separates it from the total return. Consequently, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as A yield represents the earnings generated by an investment or security over a certain time period. Yields are typically displayed in percentage terms and are in the form of interest or dividends received from it.These figures do not include the price variations, which separates it from the total return. Consequently, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as Read this Term dipped back below the 4% level briefly before the release, but is now trading at 4.02%. That is still down -5.5 basis points but off the lows. The two-year note is trading around 4.90% near unchanged on the day

Looking at the hourly chart, the AUDUSD AUD/USD The AUD/USD is the currency pair encompassing the Australian dollar of the Commonwealth of Australia (symbol $, code AUD), and the dollar of the United States of America (symbol $, code USD). The pair’s rate indicates how many US dollars are needed in order to purchase one Australian dollar. For example, when the AUD/USD is trading at 0.7500, it means 1 Australian dollar is equivalent to 0.75 US dollars. The Australian dollar (AUD) is the world’s fifth most traded currency, whilst the US Dollar The AUD/USD is the currency pair encompassing the Australian dollar of the Commonwealth of Australia (symbol $, code AUD), and the dollar of the United States of America (symbol $, code USD). The pair’s rate indicates how many US dollars are needed in order to purchase one Australian dollar. For example, when the AUD/USD is trading at 0.7500, it means 1 Australian dollar is equivalent to 0.75 US dollars. The Australian dollar (AUD) is the world’s fifth most traded currency, whilst the US Dollar Read this Term has moved back below its 100 hour and 100 day moving averages. Both of them are near the 0.6743 level. The current price trades at 0.6736. If the price can remain below those moving averages, it would build the bias to the downside

This week the price has been trading above and below the 100 day moving average as traders ponder risk-on or risk-off. The high price was reached on Wednesday at 0.67842. The low price was also on Wednesday at 0.6694. At the high, it tested the swing low from February 23. That level was broken on February 24 and the market scooted lower. The high price today stalled ahead of the 200 hour moving average.

Looking back in time the price has not traded above the 200 hour moving average since February 15. On February 16, February 20 and 21st, the price tested the 200 hour moving average only to find willing sellers. Going forward it would take a move back above that moving average to give the buyers some hope and control. The moving average currently comes in at 0.67712. Above it is the 200 day moving average at 0.67927. The high price on Wednesday fell short of that target.

All of which keeps the sellers in control.

On the downside the lows for the week just below the 0.6700 level will need to be broken to open the downside for further selling. On the downside, the 0.6628 to 0.6678 area on the daily chart below, is the next target area (see red numbered circles on the chart below). The 50% midpoint of the move up from the October low is within that area at 0.66633.