AUDUSD trades to new session high as higher stocks spur on “risk-on” flows | Forexlive

The US stocks are finding a bid after the better than expected consumer confidence data. The NASDAQ is up 164.0 or 1.56 percent at 10711.24. The S&P index is up 56 points or 1.49%. The Dow Industrial Average is up 531 points or 1.62%.

The higher stocks have attracted risk on flows in the AUDUSD pair. The pair is trading to a new high in the processes testing the 38.2% retracement of the move down from last week’s high to the low price reached yesterday. That level comes in at 0.67294. The high price just reached 0.67272. A move above that level will have traders targeting a swing area between 0.68389 and 0.67437. Above that is the falling 200 hour moving average of 0.67492.

Earlier today, the price tested it 100 day moving average down at 0.66608. Buyers came in and near that level and push the price above the 100 hour moving average. More recently, the dip after the better consumer confidence data retested the 100 hour moving average but sentiment shifted to a “risk on” flow sentiment.