• Steady early after closing up 0.5% with the U.S. dollar off 0.65%

• USD led, falling on limited Trump tariffs, with a bounce on the denial

• The AUD spike took out tight stops, leaving room for a downside test

• Australian building approvals will be interesting but unlikely market-moving

• Risk appetite, the U.S. dollar and carry flows to lead AUD in Asia

• Charts: 21-day Bollinger bands contract, daily momentum studies base

• Mixed 5, 10 & 21 DMAs, weekly moving averages fall - modest bearish setup

• The 0.6170 2022 low holds - break would target 0.5980 April 2020 base

• Yesterday's 0.6302 high and Dec 16 0.6382 top are the first resistance
Andy

(Andrew Spencer is a Reuters market analyst. The views expressed are his own.)