- AUD/USD bulls rescued from an onslaught to 0.7800.
- AUD/USD bulls need to get above 0.7950.
AUD/USD spiked on dollar weakness after a mixed set of FOMC minutes but is running out of steam on the way to the converging 50 and 200 hr SMA. But, as soon beaten up and sent back towards 0.78 the figure as the dollar bulls pick up a cheap offer. Currently, AUD/USD is trading at 0.7825, down -0.70% on the day, having posted a daily high at 0.7903 and low at 0.7820.
The Aussie has been in decline and better offered, faded on rallies since the sell-off from 0.7988 last week and for the best part has struggled to get head above water, contained by the descending 21 and 10 hourly SMAs. There was a shortlived spike overnight on the wages data that was met with heavy artillery from the bears again while the dollar continued to stabilise, chasing down the 90 handle in the DXY.
Markets getting long of stocks while FOMC uncertain about inflationary pressures
However, markets have decided to get long of stocks today which has taken some steam out of the greenback and has allowed the Aussie and commodities, in general, some time in the driving seat. Gold was especially bid o the release of the minutes that point towards higher inflation but was projected higher on dollar weakness where there was a hint of caution from Fed officials on the minutes.
FOMC Minutes: officials saw an appreciable risk of inflation lag to target
While all officials agreed that the inflation target should be met in 2018, some officials, however, also saw an appreciable risk of an inflation lag to the 2% target. That was enough to send yields lower and the DXY back to 89.60 at the time of writing.
AUD/USD levels
Bulls were rescued from an onslaught by the bears to test the bulls commitments at the 0.7800 level while a constructive case was made for such an attack with the price developing offers below the 21-D SMA at 0.7940 and the converging 10 and 50-D SMAs. However, for bulls to get the green light for higher grounds, 0.7950 and 0.8000 (as an option barrier level) are the key resistance levels beyond 0.7935/41, (21-D SMA area). Analysts at Commerzbank explained that the recent high at 0.7988 guards the key resistance lies at 0.8124/62 (the September 2017 high, the May 2015 high and the long term 50% Fibonacci retracement of the move down from 2014).
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.