The AUDUSD is consolidating above new three-week low in European session on Monday, but remains at the back foot, weighed by Friday’s large bearish daily candle (down 2.1%).
Much stronger US Jan NFP numbers on Friday lifted dollar, weighing on risk-oriented Aussie, with minor positive impact seen from news about warming China-Australia trade relations.
Fresh bears look for repeated daily close below 0.6924 (daily Kijun-sen) to confirm bearish stance and open way for test of targets at 0.6808/0.6780 (200DMA / Fibo 38.2% of 0.6170/0.7157) and pivotal support at 0.6748 (top of rising daily cloud).
Daily studies show strengthening bearish momentum, with near-term action to keep bearish bias while holding below broken psychological 0.70 support, reverted to significant resistance.
Traders eye RBA’s policy meeting on Tuesday, with wide expectations for 25 basis points and focus on central bank’s signals about the near-future actions.
Res: 0.6924; 0.6983; 0.7000; 0.7050.
Sup: 0.6871; 0.6808; 0.6780; 0.6748.
