AUD/USD: 0.8785EUR/USD: 1.2635Despite the Fed decision to leave rates on hold for a "considerable time", the FOMC's move to end QE has seen a decent rally in the dollar, with most counterpart currencies sitting at or near session lows. It looks as though the dollar could see further gains and it will be today's German Unemployment and US GDP that will be the key drivers of whether or not this comes about. The NZD has been particularly hard hit after the RBNZ left rates on hold but dropped any reference to further policy tightening, and once again lamented the current level of the Kiwi
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The Aud squeezed up to 0.8910 before falling hard to finish the US session at 0.8780, and looking heavy after US yields soared, diminishing the carry trade that has recently favoured the Aud.
Now back below the 200 HMA at 0.8800, I think it unlikely that we are headed back to much above here today, with the 100 HMA at 0.8815 providing further resistance.
The 1 and 4 hour indicators are now turning lower and support will arrive at rising trend support, currently at 0.8740. A break of this would have further bearish implications for a move back towards 0.8715 and then 0.8700. I don’t really see it below here today, but if wrong look for a run towards 0.8680 and eventually to the 0.8641 trend low.
Economic data highlights will include:
HIA New Home Sales
Jim LanglandsFX Charts www.fxchartsdaily.com
