AUD/USD received a boost today from the relief rally in emerging market currencies, but it's unlikely to last.
Global trade tensions persist and face the prospect of escalation due to the end of public discussion before the next potential round of U.S. tariffs on China.
If U.S. President Trump presses ahead with new tariffs, EM currencies will struggle as global trade takes a hit.
Another round of increased adjustable rate mortgages from Australian banks should temper aussie bulls as well.
The higher mortgage rates could hamper Australian housing markets, which in turn will make it difficult for the RBA to take any sort of hawkish tone.
Technicals suggest bears will take control again as well.
Daily charts show a consolidation phase taking hold as AUD/USD lingers above support in the 0.7100/40 region.
Completion of consolidation should resolve with a break lower.
Once that occurs a 0.7100 test is due.
A break below 0.7100 puts the February 2016 low in play.
chart: Click here