Chart - Courtesy Trading View
AUD/USD was trading largely unchanged on the day at 0.7064 at around 05:00 GMT, bias remains bearish.
The pair has failed to capitalize on the previous session's gains and has slipped lower following RBA's policy decision.
Aussie slipped lower even as the RBA announced the official end of the bond purchase program, while keeping the benchmark interest rate unchanged at around 0.10%.
On the data front, Australia Retail Sales for December marked the lowest prints since mid-2020, to -4.4% MoM versus 3.9% forecast and 7.3% prior.
Commonwealth Bank of Australia Manufacturing PMI for January was also softer-than-forecast at 55.1 versus 55.3 expected.
Mixed concerns over the size of the Fed’s rate hike keeps downside limited. Focus now on US ISM Manufacturing PMI for impetus.
Major Support Levels:
S1: 0.7054 (5-DMA)
S2: 0.7014 (Lower BB)
S3: 0.6967 (Previous week's low)
Major Resistance Levels:
R1: 0.7122 (200H MA)
R2: 0.7143 (21-EMA)
R3: 0.7164 (20-DMA)
Summary: AUD/USD has erased previous session's losses and has edged higher to break above 5-DMA. Major trend is bearish and break above 200H MA could see more upside. Breakout at 21-EMA could change near-term dynamics.
