The Aussie is Testing 80 Cents – Can it Hold On?
Dave Green • 1 min read
The Aussie Dollar has roared higher overnight, thanks to the FOMC and has stuck its head above 80 cents.
It’s been a tale of two currencies with the AUD doing it’s best to sell off yesterday when CPI data came out worse than expected, followed by a dovish FOMC update that has sent the USD crashing lower across the board.
The main takeaway for Asian traders was that the FED remains concerned about soft inflation and as such there seems to be no immediate pressure to raise rates.
At the start of Asian trade the AUD/USD managed to test the 80 cent level and is currently holding on.
Momentum is now to the upside for the session, however 80 cents does represent a historical level that both the RBA and traders feel should be the upper range of what the currency should be trading at.
Data to Watch
It’s a quiet sessions on the data front today following a busy couple of days both in Asia and the US.
Import and export prices are the only economic data to look out for, that will have the potential to move the AUD/USD.
Analysts are predicting that import prices in Australia will rise, while export prices will fall.
Fundamentally that means that there should be pressure on the AUD/USD to the downside, however the data shouldn’t have a huge impact.