AUD/USD remains firm following dovish/neutral FOMC minutes

  • AUD/USD has been little changed on the FOMC minutes.
  • The Aussie is expected to remain in a state of flux.

AUD/USD has been little changed following the Federal Open Market Committee's minutes that have been released at the turn of this hour. Indeed, they were a dovish set of FOMC minutes with the majority viewing the rate cut as a mid-cycle adjustment. However, a couple of members were calling for a 50 basis point cut to address low inflation, and it seems that the Fed is joining the series of counterparts in contemplating more than just quantitative easing should there be signs of a pending recession.

FOMC minutes highlights:

  • Participants said forward guidance and QE might not be enough to eliminate protracted risks at lower bound.*
  • Several said uncertainties remained about the efficacy of QE.*
  • A number of Fed officials stressed need for Fed flexibility.
  • A couple policymakers would have preferred a 50 bp cut to address low inflation.
  • Several favoured maintaining rates unchanged.
  • Those who favoured cut pointed to decelerating economy, elevated risks on global economy and inflation.
  • A few policymakers expressed concern of 3m/10y yield curve inversion.

Meanwhile, the Aussie is expected to remain in a flux as the improving domestic narrative is offset by weaker risk appetite, although a quiet spell might be expected into the close this week should the Jackson Hole fail to communicate anything more than what has already been priced in, potentially allowing for for a drift back to the downside. 

As for commodity markets, these are also mixed while investors waited for more signs on that state of the economic outlook. "The ANZ China Commodity Index ended yesterday down 0.2% while industrial metals suffered the most, with copper leading the sector lower - Precious metals remain strong.

AUD/USD levels

As for the technical backdrop, AUD/USD is holding sideways near term:
"It has not overcome any resistance of note and continues to hold above the 0.6738 January 2019 low. This support is reinforced by 0.6720, the 2016-2019 support line (connects the lows)," analysts at Commerzbank noted - "This move however looks exhaustive and we would allow for some consolidation/correction near term."


Today last price 0.6789
Today Daily Change 0.0013
Today Daily Change % 0.19
Today daily open 0.6776
Daily SMA20 0.6815
Daily SMA50 0.6909
Daily SMA100 0.6963
Daily SMA200 0.7056
Previous Daily High 0.6796
Previous Daily Low 0.6754
Previous Weekly High 0.6818
Previous Weekly Low 0.6736
Previous Monthly High 0.7082
Previous Monthly Low 0.6832
Daily Fibonacci 38.2% 0.678
Daily Fibonacci 61.8% 0.677
Daily Pivot Point S1 0.6755
Daily Pivot Point S2 0.6733
Daily Pivot Point S3 0.6713
Daily Pivot Point R1 0.6797
Daily Pivot Point R2 0.6817
Daily Pivot Point R3 0.6839



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.

Feed news

Latest Forex News

Editors’ Picks

Euro rolling into the Asian session below the 1.1051 level

The Euro remains under selling pressure below the main SMAs on the four-hour chart. The market is weak and a break below 1.1028 support level could open the doors to further losses.


Cable remains bearish below 1.2900 handle

GBP/USD is correcting below the 1.2882/1.2900 resistance zone and the 50/100 SMAs. Buyers would need to overcome this area on a daily basis in order to reclaim the 1.2950 resistance.


USD/JPY: Battling to recover the 109.00 threshold

The USD/JPY pair is trading lower in range, hovering around the 109.00 level ahead of the Asian opening. The pair started the day losing some ground, the daily low was set at 108.89.


Gold rebounds from multi-month lows, trades around $1,455

After posting its largest weekly percentage drop of the year and erasing more than $50, the troy ounce of the precious metal remained under pressure on Monday with the XAU/USD pair slumping to its lowest level since early August at $1,452.

Gold News

5 Biggest Risks for FX this Week

Monday was a slow start to a busy week for the currency market. The US bond market was closed for Veteran's Day but the stock market was open allowing stocks to consolidate gains. 

Read more