The Antipodeans came off multi-week peaks on Thursday after hawkish Yellen comments underlined the case for an interest rate hike this month and dented appetite for risk assets.
- Also undermining the Aussie was data showing Australia's trade deficit widened to A$3.3 billion, compared to forecasts of A$2.6 billion, due in part to weaker commodity prices
- AUD/USD slipped around 0.3 percent to hit session lows at 0.7284 but the pair crawled back above 0.7300 as early selling pressure dissipates
- Aussie resilience was seen as it remained little changed on China Caixin services PMI data which dropped to 51.2 in Nov from 52 month prior
- Daily RSI diverges to suggest the rally may be stalling, long upper wick formed on yesterday's candle shows selling pressure at highs, Stochs also show a bearish crossover at overbought levels
- Market of course mostly sidelined now as we wait on ECB decision, AUD may be buffeted via cross activity; EUR/AUD down 10.7% since Sept 29
- Support was found at 0.7250 10-DMA, break below opens to 0.7222 Dec 1st base, while resistance on the upside is seen at 0.7316 Oct 14 highs
