FXStreet (Guatemala) – AUD/USD has found strong resistance at the 20 dma and struggles to convince on the short term on the 0.70 handle, but the advances made of late technically put the major commodity in a reversal of gaining more than 20% in a recovery of the 2016 downtrend so far.
The CPI was a big lift for the Aussie that was bale to take it to new highs on the 0.70 handle while otherwise it had previously been struggling below the 0.7045 level without a catalyst.
Focus shifts back to commodities
The FOMC today however was not kind to risk appetite while the Fed are essentially concerned about the overall picture, but are committed to hike rates gradually regardless, just not at the moment as they left rates on hold. We will not be looking for any action from the forthcoming RBA next month and focus will remain with China, the Yuan fixes (albeit stablisng but for how long?) equities and commodity markets with a specific focus on the price of oil.
AUD/USD levels
Technically, Valeria Bednarik, chief analyst at FXStreet explained, ” The 1 hour chart shows that the technical indicators have accelerated their declines below their mid-lines, while the price stands below a bearish 20 SMA.
In the 4 hours chart, the price is above a now horizontal 20 SMA around the 0.7000 figure, while the Momentum indicator remains flat above its 100 level, and that the RSI indicator heads slightly lower, but above 50, limiting the downside as long as the price holds above the 0.7000 level.”
(Market News Provided by FXstreet)