AUD/USD bounce limited by key near-term resistance so far today

<p>The mood in the aussie is helped by a stronger Chinese yuan as Beijing is making some waves to start the new week. AUD/USD is up 0.5% to 0.6433 currently and is running up against its 100-hour moving average (red line) at the same level. For now, that is helping to limit the bounce of the pair on the day.</p><p>Well, a more positive risk mood overall may still help the aussie find further ground to climb later in the day. However, the big picture still requires a break back above 0.6500 to really solidify a turnaround in momentum in my view. The high last week at 0.6488 will now also act as a notable short-term resistance beyond the key hourly moving averages. So, there is much work on the part of buyers to really drive a switch in sentiment for AUD/USD.</p><p>Otherwise, stay below and sellers will continue to try and wait on the next catalyst in the hunt towards the October lows near 0.6200 again.</p>

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