AUDUSD traded sharply lower Monday to defy the short-term bull theme, but these losses were swiftly pared into the Tuesday close. This affirms the view that intraday weakness is likely corrective, with prices still clear of Feb 4 support at 0.6187. A clear break of this level is required to reinstate a bear threat. On the upside, a stronger recovery would refocus attention on 0.6409, the Feb 21 high. Clearance of this hurdle would strengthen the bull cycle and resume the uptrend that started Feb 3.
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Significant dovish adjustment over the week: