The AUD/USD trades at 0.6580, securing mild gains above the 200-day SMA.
Signs of selling momentum are still visible on the daily charts.
Despite bearish trends reflected last week, overall bulls lead as pair trades above the 100 and 200-day SMAs.
In Thursday's session, the AUD/USD was seen trading at 0.6580 with mild gains, rebounding slightly after last week's 1.20% loss. A neutral to bullish daily outlook is observed, with bears currently taking a breather. This, combined with a brighter outlook on the four-hour chart, suggests the pair might experience more bullish traction in the short term.
On the fundamental side, the AUD/USD has recently been pushed down by the strong US economic performance which makes markets think that the Federal Reserve (Fed) won’t rush to validate the market's easing expectations with a rate cut. On the other hand, Australia confirmed plans to scale back tax relief for the wealthy, effectively lifting pressure on the Reserve Bank of Australia (RBA) to continue restrictive monetary policy. Market expectations predict the RBA's first rate cut in September while markets pushed the start of the easing cycle of the Fed to May from March.
On Friday, the US will release December’s Personal Consumption Expenditures (PCE) figures which may likely set the tone of the pair for the short term
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