By Ross J Burland
AUD/USD remains bid in the session, fueled by Australian Treasurer Morrison's comment that it is "Not the time for major changes to RBA accord."
AUD/USD was supported from the open with a pullback in the greenback across the board. The bid came in from 0.7477 and the low of the bearish opening gap after last week's US CPI report's upside surprise and subsequent rally in the greenback. The bid took out the cluster of hourly ma's today and has not looked back after penetrating the 0.75 handle to recently score a high of 0.7523 ahead of 15th Sep highs of 0.7526.
Meanwhile, markets attention will fall back on the forthcoming FOMC, however, there is little expectation of any action from the Fed this time around ahead of the elections and as Kit Juckes, economist at Socgen noted, "Markets price in so little Fed tightening that Lael Brainard's (very) dovish intervention ahead of next week's FOMC meeting failed to calm jittery government bond markets."
AUD/USD is held up on the offer ahead of the key support offered by the July lows at 0.7421/10 and the 2016 support line at 0.7418/00 as noted by analysts at Commerzbank. "This remains a critical break down point to the 0.7146 May low. Intraday rallies should struggle circa 0.7577, the location of the 55 day