AUD/USD: awaiting Yellen and missing China

By FXStreet AUD/USD is currently consolidating the upside recovery but is prone to supply judging by the price action and lack of follow though on the bid, capped below the 200 sma on the hourly chart at 0.7098.

Despite the sell-off in the greenback, the Aussie has been relatively subdued while investors run for cover and understandably prefer gold and the Yen. Data is supportive to the Aussie today with new home sales mom for December came in at 6.0% vs -2.7% prior. Earlier, Westpac consumer confidence was at 101.3 vs 97.3 prior as well. We await Stevens and Yellen both testifying.

It is now all about Yellen

Yellen is up today in the US shift and Stevens’ testimony is tomorrow. If Yellen fails to turn sentiment around, the greenback is exposed to yet further unwinding. Stevens on the other hand seems to have a handle on the outlook for Australia’s economy with a cool head and should manage to maintain the status-quo, while being more vigilant and cautiously optimistic.

Meanwhile, we are without China for a week but its ok, the markets are (NOT…) doing just fine without them!

AUD/USD levels

Now trading around 0.7060, Valeria Bednarik, chief analyst at FXStreet explained …read more

Source:: FX Street