AUD/USD bears tiring post dovish FOMC minutes

January 7, 2016

AUD/USD is currently trading at 0.7065 with a high of 0.7171 and a low of 0.7043.

AUD/USD has been supported in the US session after the release of the dovish FOMC minutes. The price had otherwise been in free-fall in the start of 2016 on the back of the Chinese crisis and a risk-off mood in markets with investors seeking safer havens than the carry associated with the Aussie. The price opened 2016 on the 0.73 handle, but has since lost 20 pips or so shy of 300 pips to today’s lows of 0.7048. We now await the Nonfarm Payrolls to counter the dovishness of the FOMC minutes on a positive outcome and reignite the possibility of a break lower still in AUD/USD.

AUD/USD levels

Technically, 0.7017 November lows are in sight on the downside ahead of the September low at 0.6940. 0.7080 is first resistance while bulls may struggle at 0.7090 and the 20 SMA on the hourly. AUD/USD is offered below 0.7200.