AUD/USD reverses Friday losses on China bounce, what levels to watch? | Forexlive

It’s been a surging run up for the pair, gaining 0.9% from around 0.6385 before the headlines to 0.6447 currently. That comes after testing levels under 0.6400, which were the lowest since August. The nudge higher today now sees buyers recover back some near-term control as well. That as price action climbs above its 100-hour moving average (red line) of 0.6435.

The bounce in European trading owes to a kneejerk reaction to the China announcement here. The question now though is can all of this last?

China pledging a bigger commitment to easing monetary policy further next year is very encouraging. But without any concrete plans on the fiscal side, is this just another short-term boost? That is something to consider amid the latest bounce.

AUD/USD will now face up against further near-term resistance from the 200-hour moving average (blue line) at 0.6464.

In the bigger picture though, the bounce today mainly just erases the Friday drop. And it is a bounce of the lows from around April and August, with the former seen around the region of 0.6362 to 0.6389. The latter is seen at 0.6347 and remains another critical support point. All of that remains in contention despite the bounce here, unless buyers can turn this into something more this week.