AUDUSD tests key 200 day MA and finds some stall

The AUDUSD continued to move to the upside after yesterday breaking above a ceiling area between 0.6500 and 0.65229. The momentum today took the price through its 50% midpoint of the move down from the July hide to the October low at 0.65824, but fell short of the 200-day moving average of 0.65884. There is some stall as traders leaned against the risk-defining level. I would expect if the moving average is broken, those sellers would turn to buyers – pushing the price higher in the process.

For now, however, sellers are leaning against the dual technical levels and looking for a rotation back to the downside.

The RBA released their meeting minutes today and the central bank was a little bit more concerned about inflation which may be contributing to the upside momentum. US stocks are lower, however, and that may be leading to some modest risk-off sentiment.