AUD/USD supported at 50-DMA, eyes on healthcare vote

Eren Sengezer FXStreet

The AUD/USD dropped to a new weekly low at 0.7625 during the opening hours of the NA session, but the 50-DMA around 0.7630 was able to hold as a support for now. As of writing the pair is down 0.46% at 0.7645.

Yellen a non-event

The Chairwoman of the Fed, Janet Yellen, didn't make any comments on the U.S. economy nor the monetary policy during her speech at the Tenth Biennial Federal Reserve System Community Development Research Conference. The US dollar index has been moving sideways in a tight channel around 99.50 since the start of the session.

Eyes on healthcare vote

Now the investors are anxiously waiting for the outcome of the House vote on the Trump-backed GOP plan to replace the Obamacare. Usually, an event like this is ignored by the FX traders. However, today's voting is seen as a good sign towards Trump's administration ability to deliver on the more anticipated proposals such as the tax cuts and infrastructure spending. For now, speculations are keeping the investors on the sidelines. Earlier today, Republican U.S. representative Mo Brooks said that 30-40 Republicans are likely to vote 'no' on the healthcare bill, while House Ways and Means Committee Chairman Brady suggested that although they still have work to do, 95% of the Republican vote is definite.

Obamacare repeal bill: Defeat or Delay? - Swissquote

Technical outlook

The AUD/USD is facing the first at 0.7670 (daily high) followed by 0.7700 (psychological level) and 0.7750 (Mar. 21 high). On the downside, a break below 0.7630 (50-DMA) could aim for 0.7555 (Mar. 15 low) and 0.7510 (100-DMA).

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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