AUDUSD down 0.75% on the day at 0.7509, Yellen lifts dollar

Jose Ricaurte Jaen Analista independiente

Currently, AUD/USD is trading at 0.7509, down -0.78% on the day, having posted a daily high at 0.7567 and low at 0.7505.

Today's trading day has been good to dollar bulls pushing back most US pairs that had the greenback against the wall over the last two weeks. The catalysts that triggered such spectacular run, in some cases gained more than 1.10%, included the decent US CPI and a hawkish tone from Fed's Yellen.

The Australian dollar had little to offer during the NA session as the pair couldn't break above 0.7567, on two different occasions in less than 16-hours. Furthermore, the Aussie surrendered most gains from the last two trading days.

Global Capital flows to the US

Seeking Alpha notes, "2016 was a year of transition. The election of Donald Trump and the success of the Brexit movement in the UK were just the most visible manifestations of a backlash against globalization and changing social mores that has been simmering beneath the surface for quite some time. We expect the desire for change that marked 2016 will become actual change in 2017 - the scope and nature of which could ignite a number of "Big Moves" as the New Year progresses. Hold onto your hats folks, we may be in for a wild ride."

AUD/USD Levels to consider

Elliot Wave Forcast team notes, "AUDUSD move up from 12/23 low is extending and as pair keeps extending higher with shallow pull backs, it looks like the move up from 12/23 low is unfolding as an Elliott wave impulse when pair is still in wave 3.

"Rally to 0.735 is labelled as wave 1 and dip to 0.7283 is labelled as wave 2. Up from there wave 3 remains in progress towards 0.76 - 1.7629. Once wave 3 is complete, expect the pair to pull back in wave 4 to correct the cycle from red 2 low and turn higher in wave 5 to complete a 5 wave move up from 12/23 (0.7155) low."

"Proposed wave 4 pull back should unfold in 3, 7 or 11 swings and would typically complete between 23.6 - 38.2 Fibonacci retracement of wave 3. Wave 4 pull back should not retrace more than 50% of wave 3 as per the new guidelines that we have introduced ourselves and also not overlap with wave 1."

AUD/USD analysis: Australian employment data takes center stage

Author

Jose Ricaurte Jaen

Analista independiente

Born in Colón (Panamá). Over the last years, he has been designing currency algorithms for the retail industry.

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