AUD/USD extends the correction

FXStreet (Edinburgh) - The Aussie dollar is prolonging its correction lower on Wednesday after the AUD/USD tested fresh multi-month peaks just below 0.9390 overnight.

AUD/USD eyes on FOMC, China

The AUD keeps the bid tone despite spot easing from highs since the opening bell in Euroland today. Ahead in the day, the recent upside in the pair would be put to the test as FOMC minutes are due in the European evening followed by key Chinese Trade Balance figure, New Loans and M2 Money Supply. “AUD/USD has shot higher and is poised to reach the top of the channel at .9398. This is a pretty tough band of resistance – the October 2011 low is also here at .9388 and we would allow for this to hold the initial test”, suggested Kareb Jones, Head of FICC Technical Analysis at Commerzbank.

AUD/USD levels to watch

The pair is now up 0.13% at 0.9373 with the next resistance at 0.9400 (psychological level) ahead of 0.9448 (high Nov.20) and then 0.9530 (high Sep.18). On the downside, a break below 0.9300 (psychological level) would expose 0.9263 (low Apr.8) and finally 0.9254 (low Apr.7).

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