Up and down volatility

The AUDUSD moved to a new session low in the current hourly bar (bounding back higher as I type). The fall did crack below a lower trend line on the hourly chart below, but is finding support against a swing area between 0.72102 and 0.72153.  Also in that area is the 50% midpoint of the range since bottoming on August 20.  

On  the run higher on the initial comments from Powell, the pair broke above the highs for the week and a topside channel trend line (in the 0.7264 to 0.72751 area). The run higher stalled at 0.72897 and ran back to the downside.   

The US yields continued to move higher which helps the dollar. The 10 year is at 0.740% come up 5.2 basis points. The 30 years up 7.5 basis points at 1.489%.  

Counteracting that move (especially for the risk on focused AUD) is that stocks are trading near high levels. The S&P is up 21 points at 3500 (0.62% gain – first time ever above 3500 level), while the Nasdaq is up 53 points or 0.46% 11718.92.  The Dow industrial average has moved above its closing level from 2019 and trades positive for the year. The closing level for 2019 came in at 28,538.44.  The index currently trades at 28601, up 268 points or 0.94%.

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