AUD/USD moves towards the brink again after Fed pushback

<p>The dollar is holding firmer as we start the day and that is putting pressure on other major currencies now. AUD/USD has not enjoyed a good time to start the year, not helped by China woes as well in recent weeks. But in the case of yesterday and today, the post-Fed reaction is the key factor in play.</p><p>That is seeing the dollar post gains while equities slumped heavily, after Powell said that March is not the 'base case' for rate cuts.</p><p>As such, AUD/USD has now broken out of its <a href="https://www.forexlive.com/news/aussie-the-laggard-after-softer-inflation-data-earlier-today-20240131/" target="_blank" rel="follow">mini-consolidation range</a>. Sellers are now eyeing a test of its 100-day moving average (red line) at 0.6529. And that will be a key technical support level to watch out for before the end of the week.</p><p>Besides that, there is also the December low at 0.6525 that will help to add a defensive layer for the pair. However, that just means any break below both the 100-day moving average and the December low will be a strong signal for the downside momentum to extend.</p><p>It certainly looks like sellers have got the appetite to try and take a run at that later today. But as we look to wrap up the week, the US jobs report tomorrow will surely be the one to have the final say.</p>

This article was written by Justin Low at www.forexlive.com.