Australia hiked rates by only 25bps last week (vs an expectation of 50bps) as it became one of the first developed central banks to slow the pace of tightening. As such, AUD/USD has been moving lower as the monetary policies of the Australia and the US diverged.
AUD,/USD has been moving lower in an orderly downward sloping channel. However, the RSI began to make higher lows as price made lower lows.
Is it time for a bounce? As the pair approaches support from March 2020, AUD/USD appears to be trying to hammer out a near-term bottom with a diverging RSI.
Watch for a bounce within the channel to the top, downward sloping trendline near 0.6470 before the pair resumes its move lower.
AUD,/USD has been moving lower in an orderly downward sloping channel. However, the RSI began to make higher lows as price made lower lows.
Is it time for a bounce? As the pair approaches support from March 2020, AUD/USD appears to be trying to hammer out a near-term bottom with a diverging RSI.
Watch for a bounce within the channel to the top, downward sloping trendline near 0.6470 before the pair resumes its move lower.