AUD/USD rally may be stalling, good to go short on upticks
The Antipodeans came off multi-week peaks on Thursday after hawkish Yellen comments underlined the case for an interest rate hike this month and dented appetite for risk assets
Also undermining the Aussie was data showing Australia's trade deficit widened to A$3.3 billion, compared to forecasts of A$2.6 billion, due in part to weaker commodity prices
AUD/USD slipped around 0.3 percent to hit session lows at 0.7284 but the pair crawled back above 0.7300 as early selling pressure dissipates
Aussie resilience was seen as it remained little changed on China Caixin services PMI data which dropped to 51.2 in Nov from 52 month prior
But daily RSI diverges to suggest the rally may be stalling, long upper wick formed on yesterday's candle shows selling pressure at highs, Stochs also show a bearish crossover at overbought levels
Market of course mostly sidelined now as we wait on ECB decision, AUD may be buffeted via cross activity; EUR/AUD down 10.7% since Sept 29
Support was found at 0.7250 10-DMA, break below opens to 0.7222 Dec 1st base, while resistance on the upside is seen at 0.7316 Oct 14 highs
Also undermining the Aussie was data showing Australia's trade deficit widened to A$3.3 billion, compared to forecasts of A$2.6 billion, due in part to weaker commodity prices
AUD/USD slipped around 0.3 percent to hit session lows at 0.7284 but the pair crawled back above 0.7300 as early selling pressure dissipates
Aussie resilience was seen as it remained little changed on China Caixin services PMI data which dropped to 51.2 in Nov from 52 month prior
But daily RSI diverges to suggest the rally may be stalling, long upper wick formed on yesterday's candle shows selling pressure at highs, Stochs also show a bearish crossover at overbought levels
Market of course mostly sidelined now as we wait on ECB decision, AUD may be buffeted via cross activity; EUR/AUD down 10.7% since Sept 29
Support was found at 0.7250 10-DMA, break below opens to 0.7222 Dec 1st base, while resistance on the upside is seen at 0.7316 Oct 14 highs
