Asian markets remained stagnant with limited changes as the RBA minutes and Chinese data were released. The RBA expressed its determination to combat inflation but also mentioned the possibility of pausing or increasing rates by 25bp in May. This dovish stance has dampened interest in the AUD/USD, especially following disappointing Chinese industrial output and retail sales figures.
From an Elliott wave perspective, the currency pair indicates a bearish trend, suggesting further weakness after experiencing five downward waves last week. Therefore, we anticipate the bears to regain control after an a-b-c rally. Short-term resistance is observed at 0.6720.
