Australian Dollar Pulls Back Against US Dollar, But Holds Retracement Level

With equity and commodity prices pulling back today, the Aussie was heavily hit but held strong technicals on the retracement, suggesting another push north for the currency could be in store. Looking at the Aussie against the USD and the JPY, we see the daily retracements from the all time highs last July to the October lows on both pairs have the 50% retracement level in play.

For the AUD/USD we see the pair broke the 50% level last Friday on the USD sell off and traded down today on the retreat right to the 50% level, before holding and trading higher.

On the AUD/JPY pair we discussed yesterday, we see the test of the 50% retracement was achieved and that level held as the pair traded significantly lower (3 big figures) on the pull back. We continue to watch the 21 day moving average for support if it comes to that and below the 80 handle as the first level of resistance before further appreciation.