AUD/USD: further downside on Fed hawks looming?

By FXStreet AUD/USD is currently trading at 0.7222 within a tight range and a quiet pre-open Tokyo.

AUD/USD long positions were reduced according to the the most recent CFTC information while spot has dumped this month from a high of 0.7833 end of April business down to 0.7176 recent lows scored on the 19th May. The Fed minutes were not helpful to the Aussie, but a relief for the RBA as traders ramp up bets on a June hike from the Fed, further aiding the Aussie to more comfortable levels for the RBA.

We will hear from the Fed this week with Chair Yellen, Fed speakers and we will also hear from RBA’s governor Stevens. Oil will also be under the spotlight having performed on the bid since the 10th May rally at $43.00 until highs of $49.26 and to some extent softening the hard landing that the Aussie has felt of late.

AUD/USD levels

The 200 sma at 0.7255 was taken out recently comes as first major resistance while the 0.7200 level comes as first support while 0.7109 and 29th Feb is a major level to the downside while a major break out below 0.71 psychological handle brings back …read more

Source:: FX Street