Forex: AUD/USD bears defending 1.05; downward bias in play – V.Bednarik

FXstreet.com (San Francisco) - AUD/USD closed New York down 0.2% near intraday lows at 1.0442 on Tuesday after recording a two-month high of 1.0488 in earlier trade.

Technically speaking, “The 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,” says Valeria Bednarik, Chief Analyst at FXstreet.com.

The analyst also says that spot must extend below 1.0410 “to confirm further falls … yet to come.” 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 nation’s growth.

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