Post-NFP AUD/USD Rebound Eyes 0.7600 Hurdle Ahead Of FOMC Meeting -

Post-NFP AUD/USD Rebound Eyes 0.7600 Hurdle Ahead Of FOMC Meeting

Mar 14, 2017Jeremy ParkinsonFinance0

Currency

Last

High

Low

Daily Change (pip)

Daily Range (pip)

AUD/USD

0.7588

0.7592

0.7531

AUD/USD Daily

Chart – Created Using Trading View

AUD/USD extends the advance following the U.S. Non- Farm Payrolls (NFP) report, with the pair at risk for a larger recovery as the 0.7500 (50% retracement) handle offers near-term support; however, the string of failed attempts to close above the Fibonacci overlap around 0.7590 (100% expansion) may produce range-bound conditions especially ahead of the Federal Open Market Committee (FOMC) meeting as the central bank is widely expected to deliver a March rate-hike.

Nevertheless, another 16.0K expansion in Australia Employment may heighten the appeal of the higher-yielding currency and encourage the Reserve Bank of Australia (RBA) to adopt an upbeat outlook for the region as ‘conditions in the global economy have continued to improve over recent months,’ but it seems as though Governor Philip Lowe and Co. are in no rush to move away from the record-low interest rate as ‘inflation remains quite low;’ in turn, the fresh projections coming out of the FOMC may play a greater role in dictating near-term price action as market participants gauge the diverging paths for monetary policy.

Note AUD/USD continues to operate within the 2016 rate after failing to test the November high (0.7778), with the pair at risk of giving back the advance from earlier this year especially as the Relative Strength Index (RSI) extends the bearish formation carried over from the previous month.

Currency

Last

High

Low

Daily Change (pip)

Daily Range (pip)

EUR/USD

1.0677

1.0714

1.0656