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Although able to hold above recent weakness in the 89.20/89.30 range, it seems that AUD/USD is slipping lower once again.
On a fundamental basis, it seems the environment is more encouraging for the Aussie dollar. Major indices were buoyed by some better US data (with markets choosing to ignore the weak Philadelphia Federal Reserve reading yesterday), which has helped it to continue its strong performance in February. However, the currency’s failure to participate in the general risk-asset rally this morning raises questions about its near-term performance.
On an hourly chart, we can see that the 50- and 100-hour moving averages have turned lower. The 50-hour has already moved below the 200-hour, and the 100-hour is moving in the same direction.
If the current move lower carries on, we could expect to see another test of the 89.20/89.30 area, as investors continue to sell the currency following the disappointment of the RBA meeting. It seems there is no appetite to push AUD/USD above the recent high of 90.80, with pressure remaining to the downside for the moment.