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7 Jan 2015
AUD/USD demand protecting further test of yearly lows post FOMC
FXStreet (Guatemala) - AUD/USD has been choppy over the release of the FOMC minutes from December's meeting.
The minutes did not reveal more than we already knew, although it emphasized a number of key points. Most of which was that, currently, the Fed views the drop in oil prices as net positive for the US economy while a rate hike is unlikely to come into effect before April.
The AUD/USD price action had the pair offered initially spiking down on the 30 min charts by 40 pips before recovering with demand coming in to support the Aussie just shy of the day's and yearly fresh lows at 0.8032. Technically, the pair remains directly offered below the 0.92 handle on the daily chart. However, we are moving into oversold territory and might expect some profit taking around a weak test of the long term double Fibonacci support at 0.7950/30 should the downside prevail.
The minutes did not reveal more than we already knew, although it emphasized a number of key points. Most of which was that, currently, the Fed views the drop in oil prices as net positive for the US economy while a rate hike is unlikely to come into effect before April.
The AUD/USD price action had the pair offered initially spiking down on the 30 min charts by 40 pips before recovering with demand coming in to support the Aussie just shy of the day's and yearly fresh lows at 0.8032. Technically, the pair remains directly offered below the 0.92 handle on the daily chart. However, we are moving into oversold territory and might expect some profit taking around a weak test of the long term double Fibonacci support at 0.7950/30 should the downside prevail.