The AUDUSD is retesting the high for the day at 0.74085. That high was made in the late Asian/early European session. The subsequent fall saw the pair move below a swing area between 0.73675 and 0.73799. The last dip came on the back of the Fed’s Waller hawkish comments and a spate of dollar buying.
However since then, the US stocks have seen some rebound and that is leading to some buying in the currency pair..
The S&P and the NASDAQ index are both trading higher with the NASDAQ up near 0.9% on the day. The Dow industrial average is still modestly lower but off its lowest levels. Those moves seem to be helping the risk tone and have led to a higher AUDUSD in the process.
Of additional interest is the Biden/Xi phone call. It is now over and markets are awaiting comments.
Earlier, state media (before the conclusion of the meeting) said that Pres. Xi would tell Biden that US must guide bilateral relations along the right track and cannot advance to the stage of confrontation. They added that conflicts and confrontations are not in the interest of anyone.
Positive comments could have a positive impact on the AUDUSD currency as well as the stock markets. More negative or confrontational comments from either side would be more negative.
Move higher and the high for March at 0.74405 would be the next major target.
If buyers run out of steam near the high for the day and the price moves back below the swing area between 0.7367 to 0.7379, the selling should increase as buyers are disappointed.
