The greenback is constant its rampaging kind because the post-FOMC dip has been quite short-lived. AUD/USD noticed a bounce then to check its 100-day transferring common (pink line) however that was the place sellers leaned on to provide a comeback and we’re now seeing value take a look at waters beneath 0.7000 for the primary time because the finish of January.
The 0.7000 degree is a quite pivotal one for the pair as a break beneath signifies extra of a psychological break alongside being a technical one. From the latter perspective, it leaves little or no in the best way of a push in direction of the 50.0 retracement degree of the pandemic rally @ 0.6757 subsequent. That is fairly some room to drop for the pair from present ranges.
The RBA is slowly seeking to be extra hawkish however as issues stand, they could strategy charge hikes with a extra level-headed method whereas the Fed seems to be staying all out aggressive. Till the latter modifications, it could be robust to combat in opposition to the deleveraging commerce and if markets are promoting off all over the place, the greenback will stay king.
Going again to AUD/USD , that is the key degree to look at. If patrons can maintain at 0.7000, it does permit for some potential to bounce afterward. However the best way I see it, it’s going to be an actual take a look at of their resolve as greenback bulls proceed to hammer residence their level. It actually does really feel like it’s only a matter of time earlier than the extent breaks down.