AUD/USD: 0.7750EUR/USD: 1.1335The US$ finished lower after some volatile trade following the rather cautious outlook from the Fed at today’s FOMC meeting. Sterling in particular took advantage of the dollar’s weakness in trading up to levels last seen in November. The focus now turns to Greece, where a default seems inevitable, with the Central Bank today warning of a possible exit from the EU. Elsewhere, today sees the interest rate decision from the SNB, the UK Retail Sales, and later, the US CPI.
Having seen a steady drift down to a low of 0.7645 today, the Aud has quickly regained all its lost ground following the FOMC Meeting and is now back at 0.7750.
More choppy trade looks to be in store and it would seem that for the time being the 0.7600/0.7800 range of the last few weeks is set to continue.
The 4 hour charts are offering little hint in either direction, but the hourlies look positive and should the Aud continue to squeeze higher it will find further offers at 0.7770, 0.7785 and then at 0.7800. Above here would revisit the 3 June high at 0.7818, beyond which will see sellers at the Fibo pivots at 0.7845 and 0.7880 although this looks unlikely in the near term.
The downside will see bids at 0.7735 (100 HMA) and at 0.7715 (200 HMA). A break of 0.7700 could see a move back to 0.7670, but which looks unlikely today, although if wrong further bids would arrive at the session low at 0.7645 ahead of further support at 0.7630 and at 0.7600.
Economic data highlights will include:
China House Price Index, RBA Bulletin.
Jim LanglandsFX Charts www.fxchartsdaily.com
