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The AUD/USD pair is currently trading at 0.71, having clocked a low of 0.7060 last week.  

The 40-pip oversold bounce could be extended further toward the downward sloping 5-day moving average (MA) of 07125, as the RSI on the 4H chart is reporting a bullish divergence and an upside break of the falling trendline.  Further, the RSI on the hourly chart has moved into bullish territory above 50.00.  

The bounce, however, could be short-lived, courtesy of dovish RBA expectations. Also, Chinese yuan has erased early gains – the USD/CNH pair is currently trading largely unchanged on the day at 6.7815, having clocked a low of 6.7646 earlier today.

More importantly, a close above 6.7945 (the high of Friday’s doji) could yield big rally in USD/CNH. A slide in yuan will likely accentuate bearish pressures around the Australian currency.  

4-hour chart

Trend: oversold bounce

AUD/USD

Overview:
       Today Last Price:  0.7101
       Today Daily change:  0.0016  pips
       Today Daily change %:  0.23%
       Today Daily Open:  0.7085
Trends:
       Daily SMA20:  0.7174
       Daily SMA50:  0.7156
       Daily SMA100:  0.7169
       Daily SMA200:  0.7283
Levels:
       Previous Daily High:  0.7107
       Previous Daily Low:  0.706
       Previous Weekly High:  0.7265
       Previous Weekly Low:  0.706
       Previous Monthly High:  0.7296
       Previous Monthly Low:  0.6684
       Daily Fibonacci 38.2%:  0.7078
       Daily Fibonacci 61.8%:  0.7089
       Daily Pivot Point S1:  0.7061
       Daily Pivot Point S2:  0.7037
       Daily Pivot Point S3:  0.7014
       Daily Pivot Point R1:  0.7108
       Daily Pivot Point R2:  0.7131
       Daily Pivot Point R3:  0.7155