Direct answer
AUD/USD is most likely moving because the market is repricing one of the following: China-linked growth sentiment, commodity demand, US dollar strength, risk appetite. Traders should confirm the catalyst before assuming the move will continue.
Most likely drivers right now
China-linked growth sentiment
If china-linked growth sentiment changes, traders often reprice AUD/USD quickly.
commodity demand
If commodity demand changes, traders often reprice AUD/USD quickly.
US dollar strength
If us dollar strength changes, traders often reprice AUD/USD quickly.
risk appetite
If risk appetite changes, traders often reprice AUD/USD quickly.
How to avoid a bad read
- Check whether the move is broad-based or isolated to this asset.
- Compare the move with the strongest known catalyst.
- Confirm structure on the chart before entering.