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25 Jan 2016
AUD/USD less committed awaiting FOMC
FXStreet (Guatemala) - AUD/USD has remained better offered below the 0.70 handle after a mixed risk off/on session at the start of the week in Asia.
The Aussie came under pressure as investors bailed in the absence of a catalyst to offer reasons to stay long. There are just too many hazards out there currently and the commodity sector remains a primary concern.
The business conditions came out overnight from December's business for Australia with a reading of 7 vs 10 prior and confidence 3 vs 5 prior. Besides that, there is not a great deal to go on this week apart from the FOMC meeting. There is a strong case for a dovish outcome and that could expose territory on the 0.70 handle once again.
"January’s FOMC meeting on Wednesday is the highlight, not for the decision itself but for the accompanying statement, which will help gauge the timing of the Fed’s next hike. We expect them to acknowledge (but not focus) on recent market volatility, and to avoid any hints on March," explained analysts at TD Securities.
AUD/USD levels
Technically, the downside is exposed below the psychological 0.6980 level and lows at 0.6962 were made in a drift to the downside. A close below there is required to bring in the 200 sma at 0.6936 with S3 just below at 0.6931guarding 0.6880.
The Aussie came under pressure as investors bailed in the absence of a catalyst to offer reasons to stay long. There are just too many hazards out there currently and the commodity sector remains a primary concern.
The business conditions came out overnight from December's business for Australia with a reading of 7 vs 10 prior and confidence 3 vs 5 prior. Besides that, there is not a great deal to go on this week apart from the FOMC meeting. There is a strong case for a dovish outcome and that could expose territory on the 0.70 handle once again.
"January’s FOMC meeting on Wednesday is the highlight, not for the decision itself but for the accompanying statement, which will help gauge the timing of the Fed’s next hike. We expect them to acknowledge (but not focus) on recent market volatility, and to avoid any hints on March," explained analysts at TD Securities.
AUD/USD levels
Technically, the downside is exposed below the psychological 0.6980 level and lows at 0.6962 were made in a drift to the downside. A close below there is required to bring in the 200 sma at 0.6936 with S3 just below at 0.6931guarding 0.6880.