AUD/USD and NZD/USD both pushed higher in the Asian session, then reversed lower as U.S. Treasury yields trimmed their earlier declines and U.S. equities slipped into negative territory. The Aussie stalled below last week’s highs and fell back under its 100-hour and 200-hour moving averages, while the Kiwi was capped at a falling 100-hour average. Both pairs now carry a bias to the downside heading into nearby support.
AUD/USD and NZD/USD both pushed higher during the Asian session but have since reversed lower, handing the near-term bias back to sellers. The turn came as U.S. Treasury yields trimmed earlier declines and U.S. equities slipped into negative territory, with the S&P 500 down 0.22% and the NASDAQ lower by 0.48%. The 2-year Treasury yield is down 1.9 basis points, after being lower by more than 3 basis points earlier in the day.
The reversal in yields and risk sentiment has taken some of the wind out of the commodity currencies. According to investingLive, “Buyers had their shot at the start of the day” and have since relinquished control to the sellers.
AUD/USD stalls below last week’s 0.7022 high
AUD/USD climbed back above both its 100-hour and 200-hour moving averages in the early Asian Pacific session, with those averages currently clustered near 0.6992, and reached a session high of 0.7011. But the rally stalled at a key swing area and remained below last week’s highs between 0.7022 and 0.7026. The 0.7022 level also marks the 38.2% retracement of the decline from the May high to the late-June low, making the failure to test and break that resistance a technical disappointment for buyers.
Since then the pair has fallen back below both hourly moving averages, shifting the near-term bias to the downside. The next support comes in between 0.6962 and 0.6978. A break below that zone would strengthen the bearish outlook and expose additional downside targets at 0.6928, 0.6912, and eventually the 200-day moving average near 0.6898. To regain control, buyers first need to reclaim and hold above those hourly moving averages.
NZD/USD capped at the 0.5809 midpoint
NZD/USD also moved higher early in the session but found willing sellers near the falling 100-hour moving average and the 50% midpoint of the decline from the late-May high to the June low at 0.5809. That confluence capped the rally almost perfectly, with the day’s high stalling at that resistance.
The decline has brought the pair back toward a key swing area between 0.5765 and 0.5777, with today’s low reaching 0.5778, just above the top of that support zone. A move below 0.5765 would increase bearish momentum and target the two-week low at 0.5742, followed by the next swing support between 0.5719 and 0.5726. For buyers to regain confidence, the price would need to climb back above the falling 100-hour moving average, now at 0.5800, and hold above that level.
Source: investingLive
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