AUDUSD sets floor and ceiling levels in up and down trading | Forexlive

The AUDUSD is trading up and down for the 2nd consecutive day as the markets adjust to the new storyline(s). US yields are sharply lower as a result of the bank failures. Last week the two year yield reached a high of 5.085% and market traders were talking about 50 basis point hike at the next Fed meeting.

Now they’re talking about zero – 25 basis point move next week. As a result, the two year yield moved below 4% yesterday (over did it) and it is back at 4.3194% currently, but still well below the 5.085% from last week.

Meanwhile, in the US stock market, the NASDAQ index is up 210 points or 1.87%. The S&P is up 1.61% and the Dow is up 1.0%. So stocks are liking the lower rates it seems (and hoping the Fed will back off). All it took was a couple of bank failures, and implicit guarantee, and a bailout for Silicon Valley companies that benefited despite their excessive risk-taking. There is always a rescue.

Is that helping the AUDUSD? A little bit, but a wary eye is on rates too. After all, CPI was still at 6% today.

If I were to make sense technically, swing areas on the top and bottom did their jobs today.

On the downside, there was a support swing area between 0.6628 and 0.66389. On the topside, there was a resistance swing area between 0.6691 and 0.67036.

The low price today reached 0.66294 just above the low of the swing area (see green number circles). The high price today reached 0.66954 below the high of the upper swing area (see red number circles)