AUD/USD bulls rescued on dovish FOMC minutes

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 6, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - AUD/USD is a little higher immediate after the release of the FOMC minutes of the Dec "lift-off" meeting. Not all officials were agreeing that conditions were correct for lift-off, but the majority were in favor, but it was a close call.

    The Aussie has been rescued for the time being on a dovish outcome in the minutes with lows of 0.7048. Else where, commodities and related business has been knocked for six in the Chinese crisis to start the year and the downside in the Aussie is still favored although possibly a little overdone having fallen from 0.7320 for almost 300 pips so far. We now await the main event in Nonfarm Payrolls at the end of the week, and if the ADP is a prelude to that, more downside in the Aussie might be expected on a strong greenback.

    AUD/USD levels

    Technically, the immediate readings look at the next stop as being 0.7017 November lows ahead of the September low at 0.6940. A recovery would need to cross through 0.7080 and above the 20 SMA on the 30 min sticks. A move there could struggle at 0.7090 and the 20 SMA on the hourly while downside pressures accumulate at the 0.7200 psychological level also. Momentum readings point to a phase of consolidation for the time being while RSI (14) at 31 currently recovers back above oversold readings at 30.
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