FXStreet (Guatemala) – AUD/USD is currently trading at 0.7760 with high of 0.7816 and a low of 0.7735.
AUD/USD is making a minor recovery within the downside theme that was established yesterday when 0.7840 capped the rally from 0.7650 territory on the back of FOMC dovishness.
FOMC reminders
The FOMC’s economic outlook remains robust but the Fed’s funding rate forecasts in 2016 and 2017 were revised down by 25 basis points each. This resulted in yields falling across the curve as investors pushed back their interest rate expectations. However, the dot plot still has two rate rises coming this year but rates are likely to rise at a slower pace.
AUD/USD technically in neutral below 0.78 handle
Technically, AUD/USD recently eroded the 0.78 handle but without conviction and bears are taking back control in to the close for the week. noteworthy that the bulls achieved the 38.2% retracement at 0.7800/18.
Karen Jones, chief analyst at Commerzbank explained that a close above there would suggest that the market has temporarily based for now and they would allow for a rally towards the 0.7947, the 61.8% retracement and again introduce scope for recovery towards the 200 day ma at 0.81365. “Dips lower intraday should find support at 0.7720 ahead of 0.7646.”
(Market News Provided by FXstreet)