AUDUSD drops back to key support on RBA’s YCC pause
AUDUSD slumps 60 pips on the Reserve Bank of Australia’s (RBA) end to the Yield Curve Control (YCC) measures. In doing so, the Aussie pair extends pullback from the 200-DMA, challenging a two-month-old broad horizontal support area between 0.7475 and 0.7450. Given the downward sloping RSI and hawkish hopes from the Fed, the quote may conquer the 0.7450 support to signal further declines targeting the late October’s swing low around 0.7380. In a case where the bearish impulse remains intact below 0.7380, September 24 bottom surrounding 0.7315 will be in the spotlight.
On the contrary, September’s peak near 0.7480 guards immediate recovery ahead of the 10-DMA level surrounding the 0.7500 round figure. In a case where AUDUSD bulls keep reins past 0.7500, the 200-DMA and the latest peak close to 0.7555 should gain the market’s attention. Overall, AUDUSD bears need validation from the Fed to extend the RBA-led downside momentum.
On the contrary, September’s peak near 0.7480 guards immediate recovery ahead of the 10-DMA level surrounding the 0.7500 round figure. In a case where AUDUSD bulls keep reins past 0.7500, the 200-DMA and the latest peak close to 0.7555 should gain the market’s attention. Overall, AUDUSD bears need validation from the Fed to extend the RBA-led downside momentum.