- AUD/USD managed to rebound around 60 pips from over one-week lows.
- The uptick could be attributed to some repositioning trade ahead of the RBA.
- The set-up support prospects for a move back towards reclaiming 0.6500 mark.
The AUD/USD pair built on its steady intraday recovery move from over one-week lows and is currently placed near the top end of its daily trading range, around the 0.6425-30 region.
The goodish intraday bounce of around 60 pips lacked any obvious fundamental catalyst and also seemed rather unaffected by a strong bid tone surrounding the USD, weaker risk sentiment.
The uptick could be solely attributed to some repositioning trade ahead of Tuesday’s RBA policy decision, albeit deteriorating US-China relationship might cap any strong positive move.
From a technical perspective, the pair might find it difficult to build on its momentum further beyond 200-hour SMA and confront some fresh supply near the 0.6445-50 region.
Meanwhile, oscillators on the daily chart maintained their bullish bias and have again started moving into the positive territory on hourly charts, supporting prospects for additional gains.
Some follow-through buying beyond the mentioned barrier might trigger a short-covering move and assist the pair to move back towards reclaiming the key 0.6500 psychological mark.
On the flip side, the 0.6375-70 region (daily swing low) now seems to protect the immediate downside, which if broken might accelerate the slide further towards the 0.6350-40 support zone.
Below the mentioned support levels, the pair might turn vulnerable to break below the 0.6300 mark and slide further towards testing its next major support near the 0.6265-55 region.
AUD/USD 1-hourly chart
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