AUD/USD: Break-out soon? – OCBC

Australian Dollar (AUD) fell post-dovish RBA yesterday. AUD last at 0.6445 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Daily momentum is not showing a clear bias for now

"But the decline was also somewhat restrained, likely due to a softer USD trend. As much as domestic policy matters, external developments can also more than offset. A somewhat more constructive risk backdrop (i.e. China optimism, etc.) alongside bearish dollar trend should see still be supportive of AUD view."

"Daily momentum is not showing a clear bias for now. Immediate resistance at 0.6460 (200 DMA), 0.6550 (61.8% fibo retracement of 2024 high to 2025 low). Break out should open room for further upside. Support at 0.6420 (21 DMA), 0.6340 (50DMA)."