AUD/USD supported by 4hr 50 sma and awaits Central Bank minutes
Currently, AUD/USD is trading at 0.7680, up 0.17% on the day, having posted a daily high at 0.7692 and low at 0.7659.
AUD/USD has stalled on an exceptionally quiet day in markets with North America out on holiday. There is very little stimulus at the moment and markets are getting set for the week ahead with Central Banks taking the focus. We have the mMinutes from the RBA’s meeting released up ahead, one which had a glass half-full take on global outlook while the main event will likely come in the form of the FOMC minutes later ion in the week.
US dollar index unchanged on Monday, remains below 101.00
"The Fed's leadership--Yellen, Fischer, and Dudley--sounded increasingly confident about the trajectory of the economy and prices," explained analysts at Brown Brothers Harriman, adding, "While a March hike may seem soon, but May is looking particularly interesting. As we have argued, the Fed is a bit hamstrung by its own transparency measures."
AUD/USD levels
AUD/USD trading flat around 50 sma on the 1-hour chart and the 50 sma on the 4hr sticks is supporting the pair with a buy on dips fro the 1st Feb rally down at 0.7551.
"Last week, the market eroded the 2013-2017 downtrend and cleared the 0.7645 Fibo resistance and in doing so has introduced scope to the 0.7778/.7850 2016 highs and the 38.2% retracement," explained analysts at Commerzbank, "Directly above here lies the 200-month ma at 0.7930. Very near term we would allow for a dip to 0.7470/.7490 ahead of further gains."
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
