Currency Analyst since 2010

AUD/USD finds support

AUD/USD found support above $0.9570 and rose today back above $0.9600. Aussie strengthened ahead of the Fed’s meeting that starts tomorrow. If we get confirmation that the FOMC plans to delay QE tapering, USD will weaken and the pair will have a chance to retest $0.9700, the 200-day MA and recent highs at $0.9747. Further support is at $0.9530 and $0.9500.

Last week there have been some concerns about Chinese liquidity tightening, but Deutsche Bank says that these concerns are overdone expecting AUD/USD to reach $0.9800 by the end of the year. DB also doesn’t rule out that Aussie will rise above the parity in the coming weeks.

The RBA Governor Glenn Stevens is scheduled to speak tomorrow. The central bank meets next week, on Nov. 5 and is expected to keep the benchmark rate at the record low of 2.5%.

According to Commerzbank, a rise above $0.9757, would allow for a possible extension of the up move towards$0.9920, below support at $0.9410 the chances of this outcome will diminish.”

Chart. Daily AUD/USD

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