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AUD/USD fails to resist 0.71, drops to 0.7085

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 17, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The RBA minutes induced spike above 0.71 barrier faded, sending the AUD/USD pair lower towards Monday’s low at 0.7080 levels.

    AUD/USD seen making higher tops on daily sticks

    Currently, the AUD/USD pair trades -0.15% lower near fresh session lows posted at 0.7083, retreating from session highs recorded at 0.7108 post-RBA minutes. The Aussie ran through fresh offers at 5-DMA and quickly retraced to session lows below 0.71 handle, as the US dollar jumped to fresh seven-month tops against its major peers.

    The AUD/USD pair saw a minor rally following the RBA minutes which turned out to be mixed, with the central bank leaving further scope for easing wide open, but at the same time sounded upbeat on the Australian economic outlook. While markets appear to have priced-out a RBA rate cut this year after last week’s solid Aus jobs data.

    Focus now remains on the Dec Fed rate hike prospects which will be confirmed by the hawkish FOMC minutes due to be published on Wednesday. While the upcoming US inflation figures will also provide fresh cues on the Aussie.

    AUD/USD Levels to watch

    The pair has an immediate resistance at 0.7108 (5-DMA/ Today’s High), above which gains could be extended to 0.7144 (50-DMA) levels. On the flip side, support is seen at 0.7080 (Nov 16 Low) from here it to 0.7056 (Nov 11 Low).
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