- Aussie was slightly bid after the RBA minutes, AUD/USD edges higher from fresh 6-month lows at 0.7240.
- RBA minutes said there is considerable uncertainty about momentum in labour market and still saw excess capacity.
- Broad based USD strength after Yellen overnight suggested that the jobs market is improving (strongest in a decade) and wages are growing, likely to keep the pair subdued.
- The pair has broken major trendline support at 0.7265 and trades with a bearish bias.
- Support levels - 0.7240 (session low), ), 0.7217 (88.6% Fib), 0.72, 0.7145 (May 24 low)
- Resistance levels -0.7280 (78.6% Fib), 0.73, 0.7312 (5-DMA), 0.7345 (trendline), 0.7386 (61.8% Fib), 0.74
- Our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-slips-below-073-handle-good-to-short-rallies-456738) is progressing. TP1 achieved.
Recommendation: We recommend staying short. Bearish invalidationonly above 20-DMA at 0.7416.
FxWirePro's Hourly AUD Spot Index was at -96.3393 (Highly bearish), while Hourly USD Spot Index was at 93.1715 (Highly bullish) at 0200 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
