AUD/USD: This Ship in Going Down, Target 0.7490
has suffered a blow on the FOMC, despite there not being a hint of
hawkishism and the Fed on hold yet again, the dollar has relished in
some of the content in the statement.
AUD/USD was on a downward trajectory from highs of 0.7765 overnight on the back of the CPI data with core CPI that dropped to its lowest level since 1999. Meanwhile, after finding little stability on the way to 0.7600 below the 20 dma at 0.7665, the FOMC statement gave the greenback a further boost and the price went crashing to 0.7548 the low on the knee-jerk through the 200 sma on the 4hr time frame at 0.7625. The U.S. dollar seemed to like removals of the lack of balance of risks and reference to global risks from the statement.
Despite the Aussie's recent rally back towards 0.7850 target level (38.2% retracement of move down from 2014), it is under immense pressure and dropped below last week's low at 0.7597. The next stop is the 50 dma at 0.7514and April lows of 0.7491.