AUD/USD falls to test its 200-hour moving average to start the session

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The dollar is keeping slightly higher to start the session and that is putting some added pressure on AUD/USD as it slips to test its 200-hour moving average (blue line) again. The near-term level is seen @ 0.7724 today.

Keep above that and the near-term bias stays more neutral but break below and the bias will turn more bearish instead.

In the past few sessions, AUD/USD has been keeping in a rather narrow range as the key hourly moving averages help to limit the downside while upside momentum has been rather lacking as well – failing to extend beyond 0.7800.

Further support can be seen closer to 0.7700 and last week's lows around 0.7622 is the key level to watch in case sellers go in search of an extended downside break.

That said, I would argue that such an extensive move may only come once we get over the Fed hump tomorrow – similarly for any potential upside breakout.

For now, the pair is keeping lower as the dollar holds firmer – owing to slightly higher Treasury yields on the session. 10-year yields are up to 1.61% from around 1.59% earlier and that is helping to keep the dollar slightly underpinned.

But unless yields threaten to spiral out of control, which is unlikely for now, then price action for AUD/USD and most other dollar pairs are likely to still be contained around the key near-term levels and the technical points highlighted above.

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