18 Feb 2015
AUD/USD: depends on Yellen next week
FXStreet (Guatemala) - AUD/USD is currently trading at 0.7822 with a high of 0.7840 and a low of 0.7773.
AUD/USD is settling in on the 0.7820 support post the FOMC spike that took the Aussie half a cent higher and on to the 0.78 handle. There are some ideas now that the data dependent Fed are unlikely to raise rates as near as June given the current language around a lack of inflation and concerns for global growth and there being more required from the labour market.
Having said that, there are still arguments for a rate hike as soon as June to ease the way into a reformed policy of tightening and this supports the greenback still to a degree, and has the market balanced as a result. Fundamentally, the AUD has also found support on the RBA's February minutes that lowered the chances of a March cut. However, should the market continue to keep hopes alive for a June hike from the Fed and if Yellen performs next week, painting a bullish picture for the economy, a combination of a strong dollar and continued weakness in the commodity sector could should keep the Aussie on its knees and allow for further weakness in the pair.
AUD/USD is settling in on the 0.7820 support post the FOMC spike that took the Aussie half a cent higher and on to the 0.78 handle. There are some ideas now that the data dependent Fed are unlikely to raise rates as near as June given the current language around a lack of inflation and concerns for global growth and there being more required from the labour market.
Having said that, there are still arguments for a rate hike as soon as June to ease the way into a reformed policy of tightening and this supports the greenback still to a degree, and has the market balanced as a result. Fundamentally, the AUD has also found support on the RBA's February minutes that lowered the chances of a March cut. However, should the market continue to keep hopes alive for a June hike from the Fed and if Yellen performs next week, painting a bullish picture for the economy, a combination of a strong dollar and continued weakness in the commodity sector could should keep the Aussie on its knees and allow for further weakness in the pair.