AUD/USD: 0.7775EUR/USD: 1.0865The dollar took a beating on all fronts following the cautious outlook from the FOMC as traders rushed to cut long positions and with further weakness looking possible in the sessions ahead. Commodities repriced themselves higher on the back of the weaker dollar and the US stock indices have had the biggest rally since January. Today will be another busy one, stating with the NZ GDP, coming up shortly. Later sees the SNB IR Decision and then LTRO figures from the EU, while from the US ewe get the Jobless Claims, Current Account and the Philadelphia Fed Mfg Survey.
The Aud has made a high at 0.7846 following the FOMC decision before returning to currently sit at 0.7780.
The Aud has headed sharply higher, reaching 0.7800 following the FOMC meeting, taking out several resistance levels, and looks to be on its way to 0.7838 (38.2% of 0.8294/0.7559). Beyond this would then open the path for a run towards 0.7860 (12 April high) and possibly on towards 0.7900.
In the longer term though, I think the Aud will again come under pressure, especially if the data suggests an increased chance of an impending RBA rate cut. The 100 Month MA , pretty much where we are currently sitting, at 0.7770, will most likely continue to act as a pivot, but a break to the downside would allow a return to minor support at 0.7730 and then to 0.7700. Back below here looks unlikely in the short term, but further bids would arrive at the 200/100 HMA’s at around 0.7655.
Economic data highlights will include:
RBA Bulletin.
Jim LanglandsFX Charts www.fxchartsdaily.com
