AUD/USD It’s All About the FOMC
|S1: 0.7947||R1: 0.8060|
|S2: 0.7870||R2: 0.8102|
|S3: 0.7822||R3: 0.8124|
As expected, we saw the US Fed hold steady last night with the Federal Funds Rate remaining at 1.25%. This saw the AUD fall below 0.8000. The Fed unanimously voted to initiate the ‘balance sheet normalisation program’, which is designed to wind back the Fed’s massive balance sheet accrued during the GFC.
Momentum continues to be with the AUD and is being bid every time it falls below 80 cents. RSI still looking strong above 50 though has fallen below the 14 day MA, where it has rarely been in the last few weeks. The AUD also continues to post higher levels of resistance and lower levels of support further supporting that traders are bidding the Aussie at every chance.
The next major piece of economic data is a speech from RBA Governor Phil Lowe. Giving a speech to the American Chamber of Commerce in Australia event, titled “The Next Chapter”. Traders should look to see if the trend of RBA officials attempting to jawbone the currency lower continues.