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AUDUSD chops higher after FOMC-driven dollar moves

The pair rebounded above its 100- and 200-hour moving averages, but renewed dollar buying is now pinning it to the 38.2% retracement zone near 0.7022.

Reported · Written up by our desk · Major Pairs

Forexlive reports AUDUSD has swung sharply this week, first slipping below its 100- and 200-hour moving averages as sellers drove it toward the 200-day moving average before the decline stalled.

The momentum reversed after FOMC-driven developments, including a sharp drop in USDJPY, broader U.S. dollar selling, and firmer equity markets, helping AUDUSD jump back above the 100- and 200-hour moving averages.

The rebound pushed the pair past the 38.2% retracement of the move from the May high to the late-June low, topping out at 0.70435, just 9 pips shy of the 100-day moving average at 0.7052.

Renewed dollar buying has since lifted pressure again, but sellers have been unable to force AUDUSD below the rising 200-hour moving average at 0.6987, with the rising 100-hour moving average at 0.69815 also acting as support as the pair tests the 38.2% retracement level near 0.7022.

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