18 Jun 2015
AUD/USD: FOMC puts a smile on the bulls faces
FXStreet (Guatemala) - AUD/USD is currently trading at 0.7748 with high of 0.7771 and a low of 0.7642.
AUD/USD has recovered from the lows of yesterday's initiation of the downside that continued throughout european trade and in to the US before the FOMC. AUD/USD was suffering a blow on iron ore in yesterday's trade and attempts on the bid were quashed at the 0.77 handle back down to 0.7660 consolidation level.
AUD/USD bulls rescued on US yield curve
The price then initially fell through to 0.7642 on the back of a knee jerk reaction before markets got behind the bullish economic outlook and digested the revisions to the Fed's funding rate forecasts in 2016 and 2017 that were revised down by 25 basis points each while yields fell across the curve as investors pushed back their interest rate expectations. All in all, the dot plot has two rate rises coming this year but rates will rise at a sower pace.
Technically, we are now in to neutral territory while 0.7770 comes as first resistance ahead of 0.7800/20/60 that comes as a congested area of resistance also while a move through this space puts the pair back in to the bulls hands.
AUD/USD has recovered from the lows of yesterday's initiation of the downside that continued throughout european trade and in to the US before the FOMC. AUD/USD was suffering a blow on iron ore in yesterday's trade and attempts on the bid were quashed at the 0.77 handle back down to 0.7660 consolidation level.
AUD/USD bulls rescued on US yield curve
The price then initially fell through to 0.7642 on the back of a knee jerk reaction before markets got behind the bullish economic outlook and digested the revisions to the Fed's funding rate forecasts in 2016 and 2017 that were revised down by 25 basis points each while yields fell across the curve as investors pushed back their interest rate expectations. All in all, the dot plot has two rate rises coming this year but rates will rise at a sower pace.
Technically, we are now in to neutral territory while 0.7770 comes as first resistance ahead of 0.7800/20/60 that comes as a congested area of resistance also while a move through this space puts the pair back in to the bulls hands.