The Australian Dollar (AUD) traded lower. AUD/USD was last seen at 0.6438 levels, OCBC’s FX analysts Frances Cheung and Christopher Wong notes.

Mild bullish momentum fades

“3Q GDP missing estimate was the trigger. Markets have moved to fully price in a 25bp rate cut at Apr meeting and there were also light chatters that RBA may even need to move earlier at the Feb meeting. Tariff worries, slowing global growth concerns and anticipation for earlier RBA cuts are some factors that may undermine AUD in the short term, unless USD reverses lower.”

“Mild bullish momentum faded while RSI fell. Risks remain skewed to the downside. Support at 0.64, 0.6350 (2024 low). AUD would need to reclaim above 0.6510 to nullify AUD bears for now.”