AUD/USD: Near term risks to the downside – OCBC

The Australian Dollar (AUD) traded with a heavy bias amid disappointment with Chinese stimulus post-NPC while higher UST yields, USD weighed. AUD was last seen at 0.6545 levels, OCBC’s FX analysts Frances Cheung and Christopher Wong note.

Mild bullish momentum on daily chart is fading

“Near term, policy uncertainties associated with Trump presidency may continue to see swings in AUD but also, lack of impactful Chinese stimulus may well influence AUD volatility more.”

“Mild bullish momentum on daily chart is fading while RSI looks to head lower. Risks skewed to the downside for now. Support at 0.6490/0.6510 levels (recent low). Resistance at 0.6630/50 levels (21, 200 DMAs), 0.6690/0.6720 levels (50, 100 DMAs).”

“Data focus this week on wage price index (Wed), labour market report (Thu).”