3 Fundamental Factors Weigh On AUD/USD, Technicals Remain Bearish

The Aussie finds itself at the foot of the G10 FX performance table, with AUD/USD ~35 pips lower around $0.6300.

• The rate bottomed at $0.6296 in Asia-Pac hours.
• A trifecta of factors weighed on the Aussie overnight: a better bid USD (higher U.S. yields/weaker benchmark global equities), a softer than expected domestic labour market report and disappointing Chinese home sales data.
• Various desks have flagged the building of fresh AUD longs post-RBA minutes, so a positioning element probably factored in as well.
• Technically, any short-term gains in the cross are still considered corrective, with the trend outlook remaining bearish. Attention is on $0.6286, the Oct 3/13 low. A clear break of this support would confirm a resumption of the trend and open 0.6215, a Fibonacci projection. Key trend resistance is unchanged at 0.6522, the Aug 30 and Sep 1 high. A break is required to highlight a reversal.