The AUDUSD is following the US dollars a ride to the upside as yields move higher. The 10 year yield is now up 12 basis points out in 4.691%. It’s getting closer and closer to 5%.
Recall on Friday, the AUDUSD stall right near the near converged 100 and 200 bar moving averages on the 4-hour chart (currently near 0.6425 – see blue and green lines on the chart below). Today, the price traded above and below those moving averages in early Asian trading, but has rotated lower over the last 3 – 4 bars on the 4 hour chart.
The price is down looking toward the swing area that defined a “Red Box” (before last week’s failed break), between 0.63559 and 0.6364. A move below that level would open the door for the extreme from last week at 0.63309.
This article was written by Greg Michalowski at www.forexlive.com. Source