AUD/USD: Bulls Hoping for a Dovish Yellen

AUD/USD: Bulls Hoping for a Dovish Yellen

29 March 2016, 06:22
Roberto Jacobs

AUD/USD: Bulls Hoping for a Dovish Yellen

AUD/USD is making fresh lows after the PBOC set USD/CNY's central rate at 6.5060 vs Monday's fix at 6.5232, following a slide in the greenback in overnight trade.

AUD/USD was taking advantage of the slide in the greenback that followed a mixed inflationary outlook for the US economy in the data in the overnight shift in PCE.

AUD/USD rallied on the 0.75 handle to make fresh highs of 0.7557, but a lack of follow through leaves the longs exposed and pressures are mounting below the 1hr 200 sma at 0.7570. However, while there are no catalysts for the Aussie specifically that are scheduled domestically, the day ahead could be a tipping point to shift gears in the case of the bulls should Yellen offer some dovish clarity to the mixed picture we have got from Fed members.

AUD/USD levels

The key levels are between 0.7410/20 and March lows to the downside and 0.7680 to the upside. The price is within a bullish recovery of the aforementioned lows and trades above the pivot of 0.7532. R3 is located at 0.7623 while S2 is at 0.7465, below the 20 dma at 0.7504, with S3 located at 0.7438.

(Market News Provided by FXstreet)

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