AUD/USD turned bullish above the 200-D SMA and hunts down 0.7750

• AUD/USD is back above the 200-D SMA.
• AUD/USD has eyes for 0.7750 and mid-October high at 0.7896 thereafter.
• Trump announces his selection to replace Fed's Chair Yellen.

AUD/USD opened the NY session at 0.7700 and slipped below the handle before bouncing and scored a high of 0.7731 from a low of 0.7673. AUD/USD is currently trading at 0.7722, up 0.61%. The move higher came as the US tax plan detail finally released sent UST yield & the USD lower.  US 10yr treasury yields dropped from 2.36% to 2.33% after the tax plan was announced while the Fed fund futures yields continued to price the chance of a December rate hike at 98%. 

Trump announces Powell as his selection to replace Fed's Chair Yellen

Fed: Powell’s nomination does not change outlook for monetary policy - Wells Fargo

In respect to the Fed, Trump arrived at the Rose Garden today presenting his selection to replace Fed's Chair Yellen on Feb 3rd. Jerome Powell was confirmed as Trump's selection who accompanied the President today and made a short acceptance speech outlining his view on the economy, seemingly satisfied with the progress it has made since the financial crash and signalled that rate hikes are still on the cards considering that inflation was moving towards the Fed's target.  The market was steady on the speech while Powell is seen as a safe choice.

"He will continue with the Fed’s gradual policy tightening and adopt a softer tone to regulation, while also having bi-partisan support. As a result, his confirmation hearings are unlikely to be too controversial," explained analysts at ING Bank.

Heads will now turn towards Aussie Sep retail sales and Q3 retail trade. From China, Aussie traders will be monitoring Oct Caixin service PMI as additional risk in Asia.

AUD/USD levels

Technicals come with a bullish bias while RSIs are also biased higher with the pair back above the 200-Day SMA. "Rallies will find initial resistance at the 20-day ma at 0.7770. Intraday rallies are indicated to terminate circa 0.7750. Key near-term resistance remains mid-October high at 0.7896 – its stays immediately negative below here," explained analysts at Commerzbank. On the flip side a break back below the 200-D SMA at 0.7693, the analysts sight last weeks week’s low at 0.7625 as exposed. "Failure here targets the 2016-2017 uptrend line at 0.7465," added the analysts at Commerzbank.