A dovish RBA weighs on the aussie today
The pair is down 0.6% to its lowest since 25 October, with the low hitting 0.7471 as sellers start to explore further downside potential on the day.
The post-RBA drop also sees price action fall back below both key hourly moving averages, with the 200-hour moving average (blue line) seen @ 0.7506. This sees the near-term bias shift back to being more bearish now.
There is still some minor support from the region around 0.7460-80 in general, with the 23.6 retracement level of the October swing higher sitting at 0.7464.
That may help to limit the downside for now but break below that and it could be a quick drop back towards 0.7400 for the pair with little else in the way.
But for any real momentum to be sustained, it needs confirmation from the dollar side of the equation and that will only come after the FOMC meeting tomorrow.
For now, the technicals are starting to side with sellers but we'll see if that can continue until the end of the week as the Fed looms just around the corner.
