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15 Sep 2015
AUD/USD: FOMC is next big deal
FXStreet (Guatemala) - AUD/USD is currently trading at 0.7124 with a high of 0.7166 and a low of 0.7085 in early Asia.
AUD/USD has slowed down on the minor recovery from below the 200 SMA at 0.7031 and is finding resistance around where the 20 SMA and 50 SMA are on the same time frames at 0.7117/20.
AUD/USD and FOMC
We have the FOMC as the main event this week, but data today in Industrial production missing expectations and retails sales were fairly ordinary, Rob Carnell, analyst at ING said, "With only CPI left to come before the September 17th meeting, and that likely to be on the low side, the data dependent FOMC might find the pendulum swinging a little more to the "no hike" side." This may leave the upside favoured in the Aussie.
The RBA minutes did not offer anything new yesterday, while they continue to monitor the market and performance of the economy, signalling the Aussie at lower levels would be beneficial. Next RBA meeting is October 6, and no change is expected then. However, analysts at BBH explained that they think that with China numbers still softening, there is still an underlying dovish bias at the RBA.
AUD/USD levels
Technically, the 0.7165 level capped the upside on the Elliott-count intraday and it has taken a knock back to test through the 0.71 handle. The 200 SMA is positioned at 0.7031 today guarding the recent lows of 0.6908. On the minor recovery here back on to the 0.71 handle, further rallies may find a tough time at the 0.72 handle and the highs scored toward the end of August business.
AUD/USD has slowed down on the minor recovery from below the 200 SMA at 0.7031 and is finding resistance around where the 20 SMA and 50 SMA are on the same time frames at 0.7117/20.
AUD/USD and FOMC
We have the FOMC as the main event this week, but data today in Industrial production missing expectations and retails sales were fairly ordinary, Rob Carnell, analyst at ING said, "With only CPI left to come before the September 17th meeting, and that likely to be on the low side, the data dependent FOMC might find the pendulum swinging a little more to the "no hike" side." This may leave the upside favoured in the Aussie.
The RBA minutes did not offer anything new yesterday, while they continue to monitor the market and performance of the economy, signalling the Aussie at lower levels would be beneficial. Next RBA meeting is October 6, and no change is expected then. However, analysts at BBH explained that they think that with China numbers still softening, there is still an underlying dovish bias at the RBA.
AUD/USD levels
Technically, the 0.7165 level capped the upside on the Elliott-count intraday and it has taken a knock back to test through the 0.71 handle. The 200 SMA is positioned at 0.7031 today guarding the recent lows of 0.6908. On the minor recovery here back on to the 0.71 handle, further rallies may find a tough time at the 0.72 handle and the highs scored toward the end of August business.