AUD/USD and EUR/USD do the 200-dma dance

USD strength among the factors

The US dollar is at the best levels of the day and that’s dragged by EUR/USD and AUD/USD back to their respective 200-day moving averages.

The inability to break through those levels highlights the indecisiveness in the market. Both broke through in the low-volume period around the turn of the year but have come back down early in January.

USD strength among the factors

In the bigger picture, I think markets are looking for a new theme. Is there growth divergence anywhere? Or inflation? What are central banks doing? Or are we just waiting for the US election?

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