Fed hikes rates, AUD/USD clocks 9-day high of 0.7640

25 bps Fed rate hike was priced-in.
Hence, USD offered across the board post-Fed.
AUD/USD could test 200-day MA if Aussie jobs data beat estimates.

FXStreet Team FXStreet

The post-Fed broad-based USD sell-off pushed the AUD/USD pair to a 9-day high of 0.7640 levels.

The USD is being offered "on fact" (rate hike was priced-in). Also, the fact that the Fed's optimistic growth forecast for 2018 is based on the assumption that government will fiscally stimulate the economy has not gone down well with the investors.

This is evident from the drop in the 10-year treasury yield from 2.4 percent to 2.35 percent. Thus, the AUD/USD pair jumped to a 9-day high of 0.7640. It was last seen trading at 0.7632 levels and could easily extend the rally to the 200-day MA level of 0.7690 if the Aussie labor data due in a few hours shows continued full-time job gains.

AUD/USD Technical Levels

A move above 0.7654 (Dec. 5 high) would open doors for 0.7690 (200-day MA) and 0.77 (psychological levels). On the downside, breach of support at 0.76 (zero levels) could yield a pullback to 0.7551 (Dec. 1 low + session low), under which a major support is seen at 0.7501 (Dec. 8 low).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bullish	Neutral	Expanding
1H		Overbought	High
4H		Overbought	High
1D	Bearish	Neutral	Expanding
1W	Bullish	Oversold	Shrinking
Updated Dec 13, 20:15 GMT

Author

FXStreet Team

FXStreet

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