AUD/USD holds steady above 0.78, undeterred by Fed minutes
|- AUD/USD surprisngly resilient after FOMC minutes
- Caixin China services PMI next focus
- AUD/USD technicals constructive
The AUD/USD found enough buying interest to absorb the Fed-led USD bids coming into the market, allowing the exchange rate to rebound off 0.78, closing the NY session near its daily highs at 0.7830.
AUD/USD awaits Caixin China services PMI
With the Australian AIG Services Index PMI now out of the way (52 vs 51.7 last), the next focus will be on the Caixin China Services PMI, providing the initial direction, with an upbeat reading potentially attracting further buyers into the Aussie. Valeria Bednarik, Chief Analyst at FXStreet, notes: "The Aussie ignored better-than-expected US data, backed by firming commodities prices, with gold steady above 1,300.00, although easing post-FOMC Minutes, and crude oil prices rallying to fresh over two-year highs."
AUD/USD technicals
Valeria adds: "The AUD/USD pair presents a neutral-to-bullish stance heading into the Asian opening, as it found buying interest around a bullish 20 SMA, currently around 0.7810, while technical indicators ease modestly, but still hold within positive territory, failing to anticipate next move. Nevertheless, the risk is lean towards the upside, with scope for an extension up to 0.7896, October monthly high, on a break above 0.7845, the immediate resistance."
Jim Langlands, Founder at FX Charts, provides a second view on the Aussie technicals, noting that "the 4 hour indicators still look a little toppish so another move back towards 0.7800/0.7810 would not surprise but buying dips seems to be the plan. Stand aside. Further out, if the US dollar remains weak, a medium term move towards 0.8000 should not be ruled out."
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