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AUD/USD bulls step in post FOMC minutes slide

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    AUD/USD has started to reverse the initial offer post the less than dovish FOMC minutes.

    AUD/USD left the 0.76 handle behind to make lows of 0.7575 before reversing to highs of 0.7595 in recent trade. There is an undertone of a stronger commodity bloc of currencies in the draws of oil inventories supporting the bid as well and the price in WTI is making fresh highs now of $37.93, penetrating the 200 sma on the 1hr at $37.77 in WTI.

    The FOMC minutes have confirmed that there were two members calling for a 25 bps rate hike in March while the majority saw global conditions posing risks to US Outlook while, until now, the FOMC generally agreed that the US has been resilient amid global events. Overall, there was not the same dovishness as the March statement portrayed and that supports the outlook for rate increases this year depending on data. Meanwhile, overnight, the Reserve Bank of Australia's deputy governor was recently suggesting in Asia trade that a wide range of info points to low inflation for some time.

    AUD/USD levels

    AUD/USD price was through the 200 sma on the hourly sticks at 0.7599 and has been oscillating in a range between, 0.7602 and 0.7575. 0.7650 and late March highs are the bull's focus while a slip to 0.7480 could open up the 200 sma on the 4hr at 0.7458 guarding a slide to 0.7260 and late Fed highs.
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