Key Levels in Asia Ahead of the FOMC
Rowan Crosby • 1 min read
While all the attention today will really be on the FOMC, there are still some key levels of interest that are playing out in Asian trade.
Overnight, the USD did manage to recover some ground and that is making it interesting for the majors.
The AUD/USD was a bit of a mover yesterday, after getting bid up on some positive China data and also some comments we heard from the RBA minutes, which. noted that the AUD was higher than they might like. They all said that outlook was improving which is, of course, bullish for the time being.
In terms of levels, the AUD/USD is still getting sucked towards the 0.7300. Despite breaking higher and getting as far as 0.7340, price has pulled back, but notably, it did hold up. That is a bullish sign so we will watch how it plays out in Asia.
The Kiwi has been strong this week and it too is above key resistance now at 0.6700. Over the past week, price has come all the way from 0.6600, but there could be a few hurdles ahead as we haven’t seen much strength above that 0.6750 region.
For the time being, the round and half number levels are holding up well in the NZD/USD.
The USD/JPY has been the trade I’ve been most interested in lately given the chart pattern and sure enough, price is now breaking out of that pattern.
Price had been rotating around 106.00, and has now broken to the downside. We can see that the first level it’s hit has been 105.50 and now that is looking soft. 105.25 and 105.00 are the obvious targets and if the USD is weak, post-FOMC those targets will come into play,