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FxWirePro: AUD/USD falters at 200-DMA, broad US dollar comeback weighs

AUD/USD chart - Trading View 

AUD/USD was trading 0.32% lower on the day at 0.6598 at around 04:10 GMT, extending weakness for the 2nd straight session.

The pair erased upbeat Australian Capex data-led gains amid broad US dollar comeback. 

Data released earlier today showed Australian Q1 capital expenditure fell by -1.6%, better than estimates for a -2.6% decline. 

Positive comments from RBA's Lowe also failed to impress Aussie bulls. The pair quickly faded gains and retreated from session highs at 0.6635.

On the other side, US stock futures are flashing green on growing optimism about economic recovery from the coronavirus pandemic.

Escalating tensions between the US and China pose downside risks which could see further weakness on the pair. 

The pair has been rejected at 200-DMA resistance and 'Spinning Top' formation on Wednesday's candle dents upside.

The pair is holding minor support at 5-DMA at 0.6587. Break below could see dip till 0.65 (nearly converged 21 and 110 EMA). 

On the flipside, decisive breakout above 200-DMA required for upside continuation. 

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