AUDUSD fell on Tuesday morning after RBA kept interest rates unchanged at 4.35% but softened it hawkish tone ( on not ruling anything in or out) from the previous meeting that revived expectations for possible rate cut in February.
Recent economic data showed surprisingly weak economic growth in the third quarter, while the central bank showed some confidence that inflation remains on a steady path towards the target, contributing to the latest dovish shift in monetary policy outlook and subsequently add pressure on Aussie dollar.
Markets turn focus on Wednesday’s release of US CPI data, which would also contribute to AUD’s near term action.
Daily chart structure remains in firmly bearish, after Monday’s recovery attempts were capped by falling 10DMA (bull trap), 14-d momentum holds in the negative territory for two months, MA’s are in full bearish setup, with the latest formation of 55/200DMA death cross, adding pressure.
Bears eye targets at 0.6362 (Apr 19 low) and 0.6348 (2024 low, posted on Aug 5), violation of which would open way towards 0.6300 (psychological) and 0.6270 (2023 low).
Near-term bias remains firmly with bears while the price action stays below falling 10DMA (0.6456).
Res: 0.6440; 0.6456;0.6488; 0.6530.
Sup: 0.6372; 0.6362; 0.6348; 0.6300.
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