Technically speaking, â€œThe hourly chart shows bearish momentum easing, as indicators turn back north still in negative territory; but in the 4 hours chart, the bearish momentum seems to be increasing as indicators approach their midlines from overbought extremes,â€ says Valeria Bednarik, Chief Analyst at FXstreet.com.
The analyst also says that spot must extend below 1.0410 â€œto confirm further falls â€¦ yet to come.â€ Below there, further support is noted at 1.0370, and should AUD/USD regain the upside, a push above the psychological 1.05 mark may encounter sellers at 1.0510 and 1.0550. AUD/USD last stands at 1.0440.
Fundamentally speaking, traders continued to scale back expectations for RBA easing after the October rate cut, due to improvements in Chinese economic data and a more positive outlook for the nationâ€™s growth.
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