The AUDUSD has had a volatile up and down trading day after the better than expected jobs report earlier in the day and risk-off flows out of the AUD more recently.
The jobs report showed:
Unemployment Rate 4.3%
- Expected 4.4%, prior 4.5%
Employment Change +42.2K
- Expected +20K, prior +14.9K
Participation Rate 67.0%
- Prior 67%
Part-Time Employment -13.1K
- Prior +6.3K
Full-Time Employment +55.3K
- Prior +8.7K
That news, took the price of the AUDUSD sharply higher and through the 50% of the move down from the September high at 0.65733. However, after reaching 0.6579, the momentum faded, and the price started to move back to the downside. Lower stocks in the US sent the risk off traders back into the pair (the NASDAQ is now down -1.44%), but support did hold against the 100 day moving average at 0.65386.
The 100-day moving average held as firm resistance earlier this week, reinforcing its importance in the broader technical picture. Yesterday’s price action was choppy, with the market trading on both sides of the level as traders waited for incoming data. But with support now holding, that moving average takes on even greater significance. It becomes a key barometer for both buyers and sellers—an inflection point that will help define the next directional bias.
Staying above it keeps the buyers in play with resistance near 0.65617 and 0.6564. Moving below it would have traders looking toward the rising 100 hour moving average near 0.6529 followed by the 200 hour moving average at 0.65155.
This article was written by Greg Michalowski at investinglive.com.