AUD/USD: minor recovery from overnight 0.7550 sell-off

AUD/USD is stable on the 0.75 handle with a slight bid towards the 1hr 20 sma at 0.7518 in a minor recovery from the highs of 0.7548.

The Aussie had otherwise been better bid on yesterday's fall out in the FOMC and gold rally. AUD/USD reached a high of 0.7548 form 0.7420 in a reversal as markets set back ideas of a rate hike coming from the Fed anytime soon, despite the rhetoric in the statement suggesting that the risks to the US economy have diminished. Marekst are not buying it.

We now await the RBA next week and while the CPI was an improvement vs expectations, there are still bets on the table that the RBA will cut interest rates. We now await the PPI Q2 data that the RBA will also be closely monotiroing. 

AUD/USD levels

Valeria Bednarik, chief analyst at FXStreet explained that, "1 hour chart, the price has extended well below its 20 SMA, while the technical indicators maintain their bearish slopes within negative territory. In the 4 hours chart the price is  pressuring its 20 SMA, currently around 0.7490, and the immediate support, while the technical indicators have crossed their mid-lines towards the downside, also supporting a downward continuation towards the critical 0.7450 Fibonacci support."