AUD/USD chart - Trading View
AUD/USD recovered from three-week lows after the Reserve Bank of Australia's (RBA) aggressive intervention in the bond markets.
The RBA purchased bonds worth $4 billion early Monday – twice the amount of its regular purchases – in a bid to stem rising bond yields.
The Australian dollar has shown resilience to downbeat China Caixin PMI data. Caixin China Manufacturing PMI fell to 50.9 in February from January's 51.5, missing expectations for 51.4.
AUD/USD has paused 2 successive day of weakness and has found support at 55-EMA at 0.7673.
5-DMA has turned, Stochs and RSI are biased lower and a Bearish Divergence on RSI and Stochs adds to the bearish bias.
Recovery remains capped at 21-EMA at 0.7776. Price action is below 200H MA. Scope for further downside.
Break below 55-EMA will see retrace till 110-EMA at 0.7515. Retrace below 200-DMA support will open downside for the pair.
