Aussie loses yields tailwind as upside momentum fades
AUD/USD trades at the lows for the day to begin the European morning
The upside bounce in the pair appears to have run its course after meeting resistance at the 50.0 retracement level @ 0.6880 and failing to move above 0.6900 to challenge the 100-day MA (red line) in the past week.
The daily chart above doesn't inspire any confidence whatsoever as price has been making lower highs consistently ever since December last year. The high this month would mark the fifth consecutive sequence of that.
That's never a good sign if you're leaning towards the bullish side of a currency. Add to the fact that the yields spread divergence and has now converged:
There is a strong argument for AUD/USD to potentially get a stronger nudge lower if things fall into place this week i.e. less dovish-than-expected Fed tomorrow and softer Australian jobs report on Thursday.