AUD/USD: in a narrowing triangle. Trading Recommendations
Trading recommendations and Technical Analysis – HERE!
Despite the fact that the fed raised interest rates in the US, the AUD/USD is trading fairly stable. After sharp fluctuations yesterday during the release of the FOMC statement and subsequent conference, the pair stabilized near the mark 0.7230, and by mid-European session trading near the mark of 0.7200.
The fed's decision demonstrated the confidence in a stable recovery of the U.S. economy and optimism about the recovery of the world economy as a whole.
Australian currency, being largely based on commodities, supported by positive news regarding the global economy, since the prices of commodities in this case can start to strengthen.
On the other hand, the Australian dollar gets support from the return of investment in Australian currency with long-term investors, since the key interest rate in Australia is 2%, one of the highest among major world currencies.
At the time, as most Central banks of developed countries continue to soften its monetary policy, the RB of Australia keeps its key interest rate unchanged since June of this year.
In tandem with the U.S. dollar, the Australian dollar will remain under pressure read more
See also review and trading recommendations for the pair USD/JPY!
