The pair is copping a bounce at the 21 November low of 0.6584 to trade up by 0.3% at the moment to just above 0.6600. That said, it is but a bit-part relief after the big drop yesterday which came after Fed chair Powell's hawkish remarks piling on top of the less hawkish policy stance by the RBA earlier in the day.
From a technical perspective, AUD/USD is looking to be in troubled waters at the moment as it shakes off support from its 100-day moving average (red line) in an extended decline yesterday.
Sure, there is a slight bounce so far today but if equities continue to slide with bond yields pushing higher, it makes for a strong recipe to argue for further downside in AUD/USD.
That, especially since we are now perhaps seeing a further divergence in policy stance between the Fed and RBA.
For now, the support level above may be helping to arrest the next downside leg in the pair but sellers remain in control now with the bias shifting towards being more bearish upon the break below the key daily moving averages.
That puts the 61.8 Fib retracement level of the upswing since October, seen at 0.6547, and the 0.6500 mark in focus as sellers stay in the hunt of a bigger drop.
