FXstreet.com (Barcelona) - The AUD/USD initially gained on an unexpected rise in Australia's Q4 2008 capital expenditure, reducing speculation that the Reserve Bank of Australia will cut interest rates aggressively.
Hans Nilsson, analyst at CMS Forex said: The gains later faded as US stocks fell. Having risen modestly since making a low on October 28, the AUD/USD is near the support from the lower trading band in the positively sloping trading channel. If this support is broken, the pair will decline.
The AUD/USD is also close to the resistance from the downtrend that started last summer; if this is broken, a rally will likely occur.