16 Jun 2014
AUD/USD: Bullish while above broken trendline
FXStreet (Bali) - AUD/USD opened slightly weaker in Asia, initially trading as low as 0.9390 before some bids came back to take the rate back to its NY close and pivotal level at 0.94 round number.
FOMC main focus, RBA Assistant Governor speech eyed
The main mover for the pair this week should be the FOMC outcome on Wednesday, with the market expecting the resumption of the Fed's tapering by an additional $10bn, although most of the attention has now been shifted to any possible hints obtained on the timing of the first rate hikes in the US. Today in Asia, traders should be watchful on any headlines moving the Aussie, as we get a speech by RBA Assistant Governor Kent Speech, on Labour Market Developments, hosted by the Wall Street Journal, in Sydney.
Dip buyers should still emerge as dominants
Technically, the short and mid term outlook for the Aussie are to the upside, with last week's breakout of a key descending trendline coming off April, an important bullish development for the pair. As long as the AUD can now hold above the broken trendline around 0.9340, we should continue to see a market keen on buying dips, although it still takes a break above 0.9440/50 to open up the doors for 0.95.
FOMC main focus, RBA Assistant Governor speech eyed
The main mover for the pair this week should be the FOMC outcome on Wednesday, with the market expecting the resumption of the Fed's tapering by an additional $10bn, although most of the attention has now been shifted to any possible hints obtained on the timing of the first rate hikes in the US. Today in Asia, traders should be watchful on any headlines moving the Aussie, as we get a speech by RBA Assistant Governor Kent Speech, on Labour Market Developments, hosted by the Wall Street Journal, in Sydney.
Dip buyers should still emerge as dominants
Technically, the short and mid term outlook for the Aussie are to the upside, with last week's breakout of a key descending trendline coming off April, an important bullish development for the pair. As long as the AUD can now hold above the broken trendline around 0.9340, we should continue to see a market keen on buying dips, although it still takes a break above 0.9440/50 to open up the doors for 0.95.