AUD/USD's rally stalled after hitting a new high short of the 10-DMA, erasing its gains as China-related worries clouded the aussie's outlook. Market concerns over U.S.-China trade issues continue to hang over global trade.
Those concerns have EM currencies and especially China's yuan continuing to trade precariously.
USD/CNH rallied towards October's high and little pullback has been seen.
With yuan weakness remaining an ever-present risk, the aussie will struggle to gain as it remains a proxy for EM and the Chinese currency.
Today's AUD/USD price action has turned daily technicals bearish again.
AUD/USD is down on the day and a gravestone doji formed, while daily RSI diverged on the short-term high.
Monthly techs have maintained their bearish stance.
RSI is deepening its bearish bias, and AUD/USD remains below the 76.4 percent Fib of the 2016-18 rally.
Short-term support sits in the 0.7080/90 zone.
A break should see October's low tested. If AUD/USD clears that low, the February 2016 low is back in play.
chart: Click here