- AUD/USD upside capped by descending trendline hurdle.
- 10 Y AU-US yield differential continues to narrow in the AUD negative manner.
The three-day winning streak in the Aussie ran out of steam at the resistance offered by the trendline sloping lower from the Sep. 20 high and Oct. 20 high.
As of writing, the spot is trading largely unchanged on the day at 0.7620. The pair tested and failed to take out the trendline hurdle of 0.7632 earlier today.
The rejection at the key trendline hurdle could be associated with the narrowing of the 10-year AU-US yield spread to a 5-month low of 17.6 basis points. The narrowing yield differential is hurting the appeal of the Aussie dollar as a high yielding currency.