AUD/USD continues to struggle for upside momentum, for now at least

<p>A stronger yuan and a better risk mood yesterday doesn't seem to be enough to spark a stronger rebound in AUD/USD, after having bounced off the 0.6600 level twice now in the past few weeks.</p><p>While the dollar is struggling, the aussie is unable to capitalise on that with AUD/USD continuing to be pinned down by key resistance levels on the daily chart.</p><p>The 100 (red line) and 200-day (blue line) moving averages are still playing their part in limiting any upside momentum for now. The confluence of the two is seen in the region of 0.6682-97 currently. And after a push earlier to 0.6695, the pair is now finding itself flattish at 0.6676 at the moment in European trading.</p><p>It's very much a case of the pair struggling to break to the upside and we might not get there until the US CPI data tomorrow.</p><p>The report is going to be a make or break for buyers' case of solidifying a push higher again. Otherwise, a trip back towards 0.6600 and break below that will see 0.6500 come into play again.</p>

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