AUD/USD daily bull trend losing momentum, watching five month support line

Currently, AUD/USD is trading at 0.7582, down -0.07% on the day, having posted a daily high at 0.7595 and low at 0.7580.

AUD/USD has dropped while the USD continues its resurgence and the short-term momentum in the Aussie's daily bullish trend is starting to turn negative, despite the recent CPI measure beating expectation on the headline which should allow the RBA to stay on hold for the meantime.  The US dollar index is now up around 0.3%, relentless even in the wake of poor US data. The divergence between market expectations for a Fed hike is still fuelling the bid.

Westpac's AUD/NZD 1-3 month: "Higher to 1.0750 or above, the RBA likely to remain on hold this year while the RBNZ should ease further. Moreover, the cross remains well below fair value estimates implied by interest rates, commodity prices and risk sentiment."

AUD/USD levels

Analysts at Commerzbank noted that below the 5 month support line lies the 2016 uptrend line at 0.7522. "Further down lies the September low at 0.7443 and the 200 day moving average at 0.7474. This remains a critical break down point to the 0.7146 May low."

Meanwhile, spot is presently trading at 0.7583, and next resistance can be seen at 0.7588 (Weekly Low), 0.7588 (Daily Open), 0.7595 (Daily High), 0.7609 (Hourly 20 EMA) and 0.7616 (Daily Classic S1). Next support to the downside can be found at 0.7582 (Yesterday's Low), 0.7580 (Daily Classic S2), 0.7580 (Daily Low), 0.7565 (Daily 100 SMA) and 0.7547 (Weekly Classic S1).