AUDUSD moves back to retest the low from Friday’s trading | Forexlive

The AUDUSD traded down and back up in the Asian session and fell to new lows in the US session (with the strong dollar buying).

The high price today in the Asian session, extended toward the 50% midpoint of the move up from the March 10 low at 0.66781. The high price reached 0.66796 – just above that 50% level.

The move lower in the US session saw the 61.8% retracement broken at 0.6651 along with the low from Friday at 0.66399. The low price extended below a swing area between 0.66253 and 0.66399 on its way to the low for the day at 0.66186. That was the lowest level since March 16. However, momentum faded and the dollar started to retrace – including the AUDUSD pair. Stocks have seen a rebound which has helped slow the flight into the USD.

The rally has returned back to the swing low from Friday at 0.66399. If the price is able to get above that level traders would look toward the broken 61.8% near 0.6651. That is also near earlier session lows and also lows going back to April 3, and April 6 (see green number circles on the chart above).

Getting above both 0.66399 and 0.6651 area is needed to give the dip buyer some added confidence. Stay below each keeps the sellers in firm control. However, I would expect more upside probing on a break back above 0.6651 now.

In Australia this week, the employment statistics will be released on Thursday in Australia (Wednesday night at 9:30 PM ET). Recall, the RBA kept rates unchanged at 3.6% when they met on Tuesday last week after 10 straight increases which saw the rate move up from 0.1% to 3.6%.

Meanwhile, last week the Reserve Bank of New Zealand surprised market by raising rates by 50 basis points for the 11th consecutive increase. The RBNZ moved rates from 0.25% to 5.25% over that run higher. The expectations are for the terminal rate to rise to 5.5% when they meet next in May.