AUD/USD continues slide heading ahead of FOMC

Aussie slips on construction miss.
USD lifting on bond yields ahead of FOMC.

Joshua Gibson FXStreet

AUD/USD continues to fall in Asia trading, trading near 0.7855 ahead of the European markets.

The Aussie started to slide early in Asia following a huge miss from Completed Construction Work, with the actual figures coming in at a dismal -19.9%, far below the forecast -10%, and even further away from the previous 16.6%. Coming into the European session, the focus will now turn to the US FOMC Minutes dropping at 19:00 GMT.

The pair continues to sink as the US Dollar recovers on the back of rising bond yields, with 10-year Treasuries at a four-year high and the 2-year note at its highest yield since 2008.

AUD/USD Technicals

With bond yields driving up the Greenback and middling data continuing to weigh down the Aussie, the pair looks set to continue the bearish correction that saw the pair fall from January's high of 0.8136; Daily candles are now trading just beneath the 34 EMA, with the 200-day SMA still below at 0.7770. Current support is priced in at 0.7854 and 0.7780, and resistance waiting to challenge any bullish swings at 0.7908 and 0.7966.

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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