AUD/USD: minor recovery stalling ahead of FOMC

By FXStreet FXStreet (Guatemala) – AUD/USD is currently trading at 0.7086 with a high of 0.7093 and a low of 0.7076 in early Asia.

AUD/USD recovered last week towards the 0.71 handle from below the 20 hourly SMA at 0.6907 as profits were booked in the greenback on tepid data ahead of the FOMC showdown this week where the Fed may hike rates for the first time in a decade. However there is a great deal of uncertainty around this event and leaves the dollar exposed to volatility on the lead up to the 17th of this month and Fed decision. From over the weekend, China reported disappointing data that weighs on the Aussie while the main event before the Fed’s decision this week will be the RBA’s minutes in light of the recent market turmoil.

AUD/USD levels

Technically, AUD/USD’s key upside target comes as the 0.7165 level on the Elliott count intra day ahead of tough resistance at the 0.72 handle and the highs scored toward the end of August business. Karen Jones, chief analyst at Commerzbank explained that the market will need to overcome the 0.7448 July 21 high in order to negate downside pressure longer term. “Below 0.6980 will …read more

Source:: FX Street