The AUD to Bounce off 80
Rowan Crosby • 1 min read
The AUD will continue its love affair with 80 cents this week as there’s a fair bit of market-moving data coming out, that might give us an opportunity. We, of course, have the FOMC interest rate decision on Wednesday night (Asian time). That will be a key driver on for the USD.
However, we also have RBA meeting minutes out on Tuesday. The key here is that they are both significant news events. As such the technical levels come into play a bit more and we can be more confident that we are not going to get any big runaway spikes in either direction.
AUD/USD – 240 min Chart
80 Cent Play
At the moment we are grinding our way up a trendline and also bouncing off the key 8 cent level which is acting as support. That presents a good buying opportunity for the moment. As time goes on that starts to look a bit more like a bearish upward channel with 80 being a great level to sell.
However, ahead of any market moving news, such as the inclining of a US rate hike, it might be prudent to keep on buying off the current support level.