Brocker.Org: AUD/USD price action subdued, unable to get back above water (0.7600)


Currently, AUD/USD is trading at 0.7583, up 0.06% on the day, having posted a daily high at 0.7589 and low at 0.7576.

AUD/USD is struggling on the bid considering a resurgence in the dollar as markets digest the FOMC and take it as a hawkish outcome, supporting yields and DXY overnight. 

However, there are many who feel the Fed are sleeping walking into “a dreaded policy error” that looks to be picking up.

Analysts at Westpac offered a breakdown of the jobs data here:  Aussie jobs reviewed: hours picking up, positive for economy – Westpac

Regardless of yesterday’s jobs report showing an improvement in hours, the Aussie was on the back foot after an initial spike on the data to 0.7630. The rally was faded and a strong drift to the downside ensued back to the 0.7560’s for a double bottom. The Aussie has been struggling to get above water again since and price action remains subdued in early Asia ahead of the Tokyo open. There are no risk events for the Aussie today and all eyes are on the BoJ instead. 

AUD/USD levels

Valeria Bednarik, chief analyst at FXStreet explained that the technical picture still shows a limited downward potential. “Intraday retracements were contained by a bullish 20 SMA, currently offering a dynamic support around 0.7560, whilst technical indicators lack clear directional strength, but hold within a positive territory.”