The Australian dollar struggled as the RBA slowed the pace of tightening with a mere 25bp hike. A previous break above 0.6500 flushed out some selling interests and gave the aussie a little breathing room. The price action has since secured a footing over 0.6390. The current consolidation may lift offers to 0.6600 next to the 20-day moving average. But sentiment remains cautious and trend followers may look to sell into strength. However, a bullish breakout could open the door for an extended recovery towards 0.6800.
