AUD/USD to dip below 0.7675/85 on a failure at the 0.7740/50 zone – ING

FXStreet Insights Team FXStreet

AUD/USD is set to experience a sharper correction lower if the pair fails to surpass the 0.7740/50 area – which is currently tacking. The slide in Iron Ore triggered by Chinese policymakers also warrants some caution, as reported by ING.

Iron Ore slump suggests caution

“After surging 10% on Monday, Iron Ore is now falling 10% today. Driving this move seems to be the intervention of Chinese policymakers, wary that a surge in commodity prices could undermine the recovery. Here, officials have raised margins and imposed fees on steel trading and made it clear that speculators will be frowned upon.”

“The synchronised recovery in global demand suggests the rally in commodities is an enduring one. But for the short-term, corrective forces are at play – which could take its toll on the AUD – a key exporter of iron ore.”

“Failure of AUD/USD to regain the 0.7740/50 area today, warns of some potentially sharper corrective losses under 0.7675/85.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

USD/JPY hovers below 160.50 intervention zone ahead of FOMC decision

USD/JPY remains below the 160.50 intervention zone in the Asian session on Wednesday. Despite the BoJ's rate hike to its highest level since 1995, Japan's borrowing costs remain significantly lower than the US, undermining the Japanese Yen. However, thpair US Dollar remains on the back foot amid the optimism over the US-Iran peace deal and ahead of the Fed policy decision, weighing on the pair.

AUD/USD holds steady above 0.7050; looks to Fed for fresh impetus

AUD/USD is consolidating above mid-0.7000s in the Asian session on Wednesday as traders await the outcome of a two-day FOMC meeting due later in the day. In the meantime, the optimism over an interim peace deal between the US and Iran keeps the US Dollar bulls on the defensive. This, along with the RBA's hawkish pause on Tuesday, acts as a tailwind for the pair.

Gold buyers lack conviction as Fed policy decision looms

Gold is holding its five-day winning streak near $4,350 in Asian trading on Wednesday, but remains within this week’s familiar range. Traders look forward to the all-important US Federal Reserve monetary policy decision for a clear directional impetus.

Coinbase outlines 'Everything Exchange' vision with planned tokenized stocks and AI advisor

Crypto exchange Coinbase unveiled a broad slate of new products on Tuesday, outlining plans to expand into tokenized equities and AI-powered investment tools in its pursuit of becoming an "Everything Exchange." A centerpiece of the roadmap is Coinbase's planned launch of tokenized US equities for customers outside the United States.

The most important event will be the Fed meeting with Mr. Warsh now in charge

The most important event will be the Fed meeting on Wednesday, with Mr. Warsh now in charge. As more than one analyst points out, the case for holding rates the same is strengthened by the Iran deal and the prospect of the Strait re-opening, although nobody thinks Warsh can marshal enough doves to do a cut this time.

Why a hawkish RBA is no longer enough to lift the Australian Dollar

The Reserve Bank of Australia delivered more than what markets expected: a hawkish hold that should have supported the Aussie. But markets widely ignored it, focusing instead on slowing economic growth and proving that central bank messaging alone isn’t always enough to drive currencies.