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The RBA has opted to stand unmoved yet again, but more positive data has helped AUD/USD traders retain a degree of optimism. Strong home building figures helped to provide some reasons for buying the Australian currency.
On a four-hourly chart, it appears that AUD/USD is being capped by a descending trend line running down from the highs seen last week. This has held so far today as well, while the 50-period moving average is heading lower once again.
Based on this, we can say that it is likely that AUD/USD is heading back towards support at 89.00, which provided a degree of support throughout February. If the descending trend line holds then it becomes a question of whether AUD/USD will break below the 89.00 level, and, if this happens, the February lows of around 87.00 will become the next target.