AUD/USD Winning Streak at Risk

AUD/USD has traded weaker on the session after hitting multi-month highs earlier this week. The pair’s rally has been supported by a relatively hawkish tone from the Reserve Bank of Australia at the start of the week, which left rates unchanged and refocused markets on potential divergence with the Fed. Aussie strength is also buoyed by broader risk sentiment improving, though weak November Australian jobs data on Thursday trimmed some upside.

AUD/USD Daily Price history

AUD/USD rates have seen strong bullish momentum for weeks, having sustained closes above its 1-week or 5-day exponential moving average (EMA) every session since November 25. That said, a probe below the trend level yesterday indicates weakening momentum, and at the time this note was written, AUD/USD was sitting right at its 5-EMA. A loss of trend would open the door to a pullback to the late-November/early-December swing zone near 0.6570/80. 

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