- AUD/USD is trapped between the 50- and 100-day MAs.
- Range breakdown looks likely, courtesy of Friday’s US data.
AUD/USD is currently trading at 0.6984, representing 0.10% gains on the day.
The pair fell more than 70 pips on Friday as the above-forecast US non-farm payrolls data strengthened the bid tone around the greenback.
Even so, the immediate outlook on AUD/USD is neutral as the pair is still trapped between the 50- and 100-day moving averages (MA). That has ben the case since June 27.
A close above the 100-day MA, currently at 0.7029, would confirm a range breakout and signal a continuation of rally from the June 18 low of 0.6832.
Meanwhile, a close below the 50-day MA of 0.6952 would confirm a range breakdown and allow retest of the recent low of 0.6832.
A range breakdown looks likely as prospects of aggressive Federal Reserve easing have weakened following Friday’s US non-farm payrolls release.
Daily chart
Trend: Neutral
Pivot points
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