AUD/USD firmly bid on 0.75 handle on firmer RBA outlook
|AUD/USD remains bid in the session, fueled by Australian Treasurer Morrison's comment that it is "Not the time for major changes to RBA accord."
AUD/USD was supported from the open with a pullback in the greenback across the board. The bid came in from 0.7477 and the low of the bearish opening gap after last week's US CPI report's upside surprise and subsequent rally in the greenback. The bid took out the cluster of hourly ma's today and has not looked back after penetrating the 0.75 handle to recently score a high of 0.7523 ahead of 15th Sep highs of 0.7526.
Meanwhile, markets attention will fall back on the forthcoming FOMC, however, there is little expectation of any action from the Fed this time around ahead of the elections and as Kit Juckes, economist at Socgen noted, "Markets price in so little Fed tightening that Lael Brainard's (very) dovish intervention ahead of next week's FOMC meeting failed to calm jittery government bond markets."
AUD/USD is held up on the offer ahead of the key support offered by the July lows at 0.7421/10 and the 2016 support line at 0.7418/00 as noted by analysts at Commerzbank. "This remains a critical break down point to the 0.7146 May low. Intraday rallies should struggle circa 0.7577, the location of the 55 day ma."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.