Australian Greenback, AUD/USD, ASX 200, NZD, US Greenback, USD/JPY, EUR/CHF – Speaking Factors
- The Australian Dollar has wilted within the face of a strong US Dollar
- APAC equities have been dusted by threat aversion fever taking maintain
- After a busy week of price hikes, will USD hold going north, sending AUD south?
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The Australian Greenback is below strain once more immediately after making a 2-year low yesterday as threat belongings wrestle within the aftermath of the Fed’s price hike on Wednesday.
Within the aftermath of the Fed’s 75 foundation level hike on Wednesday, Treasury yields leapt larger within the North American session in a single day. This additional boosted the US Greenback, driving AUD/USD decrease. The Kiwi has been caught up in the identical vortex and can also be close to a 2-year low.
USD/JPY had a glance below 142 early within the Asian session however has steadied again above that degree as markets tackle board the Financial institution of Japan’s intervention yesterday. It’s a Japanese vacation immediately.
Sterling continues to press for contemporary lows regardless of the Financial institution of England mountaineering charges by 50 foundation factors yesterday. GBP/USD hasn’t traded at these ranges close to 1.1200 since 1985.
EUR/CHF is inching above 0.9600 on the time of going to print after yesterday’s 75 foundation level raise by the Swiss Nationwide Financial institution.
The VIX index, a measure of volatility on US shares, has steadied close to 27 after spiking over 30 after the Fed’s price hike. It’s nonetheless a good distance from the excessive of 39 seen at first of the yr.
Crude oil is regular once more to date immediately with the WTI futures contract close to US$ 83 bbl whereas the Brent contract is a contact beneath US$ 90 bbl. Gold stays vary certain, buying and selling round US$ 1,670 an oz.
Trying forward, after a plenitude of European PMIs Fed Chair Powell will likely be making remarks in addition to Vice Chair Brainard and board member Bowman. The ECB’s Nagel and Swiss Nationwide Financial institution’s Jordan may also be crossing the wires.
The total financial calendar may be considered here.
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How to Trade AUD/USD
AUD/USD TECHNICAL ANALYSIS
AUD/USD continues to languish close to a 2-year low and it stays inside a descending pattern channel. The low of 0.6574 was the decrease certain of the channel and it might present help going ahead.
The worth is beneath all quick, medium and long run simple moving averages (SMA) and all SMAs are displaying a detrimental gradient. This may occasionally counsel that bearish momentum might proceed to evolve.
Resistance could be on the break factors of 0.6671, 0.6682 and 0.6699
— Written by Daniel McCarthy, Strategist for DailyFX.com
To contact Daniel, use the feedback part beneath or @DanMcCathyFX on Twitter