FxWirePro: AUD/USD snaps 5-day bearish streak, PBOC's loose monetary policy strengthens antipodean

Chart - Courtesy Trading View 

Spot Analysis:

AUD/USD was trading 0.32% higher on the day at 0.6897 at around 06:50 GMT.

Previous Week's High/ Low: 0.7125/ 0.6859

Previous Session's High/ Low: 0.6919/ 0.6859

Fundamental Overview:

The People Bank of China (PBOC) at its monetary policy meeting has elevated its one-year and five-year Prime Lending Rate (PLR) by 5 basis points (bps) and 15 bps respectively.

The Australian dollar found significant bids after the PBOC's dovish stance. 

Australia is a leading trading partner to China and a loose monetary policy by the PBOC is strengthening the antipodean.

Focus on the Jackson Hole symposium for impetus. Uncertainty over the commentary from the Fed will keep traders cautious.

Investors also await the release of the US Durable Goods Orders data, which is expected to decline to 0.6% from the prior release of 2%.

Technical Analysis:

- AUD/USD has bounced off cloud base support

- 5-DMA is biased lower and price action is below major moving averages

- GMMA indicator shows major trend is neutral while minor trend is bearish

- MACD shows bearish crossover on signal line and ADX supports downside

Major Support and Resistance Levels:

Support - 0.6847 (Lower BB), Resistance - 0.6928 (5-DMA)

Summary: AUD/USD pauses downside at cloud base support, major trend still remains bearish. Breach below cloud will drag the pair lower.