AUD/USD: Where did all buyers go?

FXStreet (Bali) - Traders may still be somewhat puzzled by the inaction of buyers in the Aussie market this week, with the rate suffering sharp losses and what is worse, showing no impetus to sustain the smallest bounce.

The pair offers a worsened technical picture, with Monday's bearish outside day followed by an extension that broke the daily kijun line, penetration of an ascending trendline coming off Jan lows, coupled with a breach of the 50 dma. Declines in iron ore prices, S&P warning scare, a dovish RBA, China's growth concerns/property market, were all factors reportedly weighing on the Australian Dollar as the cleanout of longs continues.

AUD/USD technicals

Valeria Bednarik, Chief Analyst at FXStreet, notes: "The hourly chart shows 20 SMA extended its bearish slope and converges with a Fibonacci retracement at 0.9280, offering immediate intraday resistance, while indicators head higher correcting oversold readings yet far from suggesting a short term bullish run. The 4h chart shows a stronger bearish tone that favor a downward extension towards 0.9200 this month."