AUD/USD downside favoured despite US data misses

By FXStreet FXStreet (Guatemala) – AUD/USD is currently trading at 0.7082 with a high of 0.7120 and a low of 0.7069.

AUD/USD has moved into consolidation after the downside opened up as the greenback comes back into vogue while the divergence between the Central Banks. The FOMC has left the door wide open for a December hike and while the markets are in anticipation of that, the bearish bias prevails.

Full text October FOMC statement

However, one of the key criteria for lift-off is for the FOMC feeling more confident about inflation reaching the 2% target and today doesn’t amount to such an outcome in the near future with personal consumption expenditure prices Q/Q dropping to 1.2% vs 3,2% expected and 2.2% previous.

We now await the Y/Y and M/M tomorrow while GDP today was also a miss for the US, Q3 annualized at 1.5% vs 1.6% expected and well below 3.9% previous. These misses coupled with the recent miss in Nonfarm Payrolls may be factors that the FOMC will consider as a reason to hold off until 2016, but at this stage, the market is not pricing in such a possibility and price action remains favourable in the greenback. Next …read more

Source:: FX Street