AUDUSD is moving sideways in a range visible on its short-term charts, finding support around .7225 and resistance at .7300.

The pair is currently testing support, which seems to be holding as a floor again. In that case, AUDUSD could bounce back up to the resistance again. Stochastic is confirming that buyers are returning, as the oscillator is pulling up from the oversold region.

RSI hasn’t quite reached the oversold area yet, but the oscillator is also turning higher to suggest that buyers are eager to take over.

At the same time, the 100 SMA just crossed above the 200 SMA to confirm that the path of least resistance is to the upside or that support is more likely to hold than to break.

Still, a break below the range support could set off a drop that’s the same height as the rectangle formation or around 80-90 pips.

There are no major reports due from both Australia and the US today, although volatility is expected around the time of the “Policy Panel” discussion hosted by the ECB.

Note that top central bankers like ECB head Lagarde, BOE Governor Bailey, Fed Chairperson Powell, and BOJ Governor Kuroda are due to participate in the event. Any hints on their policy plans could impact overall market sentiment.

In particular, more clues about tapering in November might mean more upside for the US currency across the board. On the other hand, reiterating that inflation is transitory could push back tightening expectations to much later in 2022, which might mean some downside for the dollar.

China has its official manufacturing and non-manufacturing PMIs due in the next Asian session, and this would likely impact Aussie price action. Mixed results are eyed, with the manufacturing figure slated to show a slower expansion and the services component possibly indicating a return to growth.