Friday, September 18, 2015

AUD/USD rallies to 0.7260, unperturbed by risk-off

FXStreet (Mumbai) - The AUD/USD pair picked-up significant strength in the early moves and stormed its way through the 0.72 barrier and beyond, now testing highs reached on FOMC announcement.

AUD/USD holds firmly above 0.7200

Currently, the AUD/USD pair trades 1.16% higher at 0.7257, having posted fresh highs at 0.7261 in post-FOMC trading. The Aussie bulls remain unstoppable and extend higher as markets continue to digest both the central banks’ events that took place in the last 24 hours.

AUD/USD was strongly bid and remained unperturbed by the escalating risk-off sentiment, which usually diminishes the demand for higher yielding currencies such as the AUD

Moreover, markets also react to RBA Stevens speech delivered earlier today, where he stated that the lower AUD is now having a bigger impact on the economy.

RBA Stevens told parliament, "More recently, the significant decline in the exchange rate is starting to have more discernible effects on the pattern of spending and production."

Whilst, broad based US dollar sell-off back by the dovish Fed outcome also continues to bolster the Aussie pair. The Fed kept interest rates unchanged for the 55th straight meeting and revised median interest rate forecasts lower, citing global worries.

AUD/USD Levels to watch

The pair has an immediate resistance at 0.7279 (Sept 17 High) levels, above which gains could be extended to 0.7300 levels. On the flip side, support is seen at 0.7164 (Today’s Low) levels from here it to 0.7133 (Sept 17 Low).
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