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FxWirePro: AUD/USD holds marginal gains despite PBoC inaction, scope for weakness

Chart - Courtesy Trading View 

AUD/USD was trading 0.11% higher on the day at 0.6917 at around 04:35 GMT.

The pair has snapped a 2-day downside, but recovery attempts seem to lack followthrough.

People’s Bank of China (PBoC) has kept the one-year and five-year Loan Prime Rates (LPR) unchanged. 

Traders were expecting a dovish monetary policy from the PBoC to support economic recovery after the Covid-19 epidemic.

On the other side, hawkish Federal Reserve (Fed) comments and fears of fresh geopolitical tensions emanating from China seem to challenge optimism.

Technical bias for the pair has turned bearish on the intraday charts after price action has slipped below 200H MA and 5-DMA shows bearish turn.

Stochs show bearish rollover from overbought levels and MACD is on verge of bearish crossover on signal line.

Next immediate support is seen at 21-EMA at 0.6867, break below will see dip till 200-DMA. Breach below 200-DMA will see major weakness.
 

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