FXStreet (Guatemala) – AUD/USD is losing the bullish momentum on the very short-term time frames as Aussie data disappoints in the building permits. We are less volatile as we head towards the middle of the week’s close but the party hasn’t quite started yet.
We await the Yuan fix and Chinese stock markets open and performances. There is a divergence between on -shore and off-shore yuan which could resemble a further weakness in the Yuan and a risk to risk appetite and the Aussie We are also looking forward to the Nonfarm Payrolls at the end of the week to potentially counter what damage the dovishness in the FOMC has done to the greenback overnight.
Technically, the bid is losing steam and we are looking back to the downside with RSI decreasing on the short-term sticks as we look at 0.7017 November lows again ahead of the September low at 0.6940. 0.7080 is first resistance while bulls may struggle at 0.7090 and the 20 SMA on the hourly. AUD/USD is offered below 0.7200.