A rebound in Chinese stocks and a slight softness in the dollar is helping to keep AUD/USD higher so far today, even with a rather poor Australian jobs report earlier here. The currency pair is up 0.3% to 0.6565, also assisted by a technical bounce off its December low:

However, the pair is now caught in a bit of a technical box in between its 100-day (red line) and 200-day (blue line) moving averages. The former is at 0.6513 with the latter at 0.6580 and that provides two key lines in the sand for buyers and sellers to work with respectively.

To continue the downside momentum, sellers will have to chase a break below the December low of 0.6525 and then the 100-day moving average at 0.6513. Meanwhile, to reverse the momentum, buyers will have to push for a break back above the 200-day moving average at 0.6580 currently.

So, that offers up a range for the pair to do some pushing and pulling before figuring out what the next move is.

The near-term chart dictates that sellers are still in control but the daily chart as seen above, looks to be taking precedent on price action importance. The aussie might be looking steadier so far today on the factors mentioned but it is now up to buyers and sellers to prove their mettle in the technical battle above.

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