19 Sep 2013
AUD/USD soars on FOMC dovishness; up to Fibonacci resistance at 0.9556
FXstreet.com (Barcelona) - The AUD/USD exploded higher through layers of previous resistance levels thanks to the hurricane-force tailwind provided by the US’s Federal Reserve and their surprising decision to postpone their QE-tapering program for the time being.
RBA bulletin sets the table for flurry of US data later on Thursday
Now that the ”taper / no taper / partial taper” decision has been made and shared with the public – heavily in the favor of risk bulls – AUD/USD traders get to turn their attention back to the actual data flow of the two countries. The general tone of the data will be critical to monitor as the FOMC has now, by virtue of their (some would argue irresponsible) decision Wednesday, put the pressure on the rest of the globe’s central bankers to remain dovish – in the RBA’s case against their will (click here to read more on that).
Early Thursday, the Reserve Bank of Australia will be releasing their quarterly Economic Bulletin. Later in the day, the US will see released its Weekly Jobless Claims and existing home sales data, the Philly Fed Manufacturing Survey and the Conference Board’s Leading Economic Indicators.
Technical outlook for AUD/USD
Technicians say the big rally Wednesday took the AUD/USD right through the 23.6% Fibonacci retracement line (for the decline that took place over the last year) and all the way up to the 38.2% line at 0.9556. If Elliott Wavers are accurate in their macro wave count, this rally is part of wave 4 and should have a ceiling at either the 38.2% line or, at the very highest, at the 6/1/12 close of 0.9696.
RBA bulletin sets the table for flurry of US data later on Thursday
Now that the ”taper / no taper / partial taper” decision has been made and shared with the public – heavily in the favor of risk bulls – AUD/USD traders get to turn their attention back to the actual data flow of the two countries. The general tone of the data will be critical to monitor as the FOMC has now, by virtue of their (some would argue irresponsible) decision Wednesday, put the pressure on the rest of the globe’s central bankers to remain dovish – in the RBA’s case against their will (click here to read more on that).
Early Thursday, the Reserve Bank of Australia will be releasing their quarterly Economic Bulletin. Later in the day, the US will see released its Weekly Jobless Claims and existing home sales data, the Philly Fed Manufacturing Survey and the Conference Board’s Leading Economic Indicators.
Technical outlook for AUD/USD
Technicians say the big rally Wednesday took the AUD/USD right through the 23.6% Fibonacci retracement line (for the decline that took place over the last year) and all the way up to the 38.2% line at 0.9556. If Elliott Wavers are accurate in their macro wave count, this rally is part of wave 4 and should have a ceiling at either the 38.2% line or, at the very highest, at the 6/1/12 close of 0.9696.