AUD/USD: technical picture
AUD/USD keeps consolidating in the $0.9840/9750 sideways range after having touched a yearly low of $0.9710 on Friday. Yesterday the bulls pushed to $0.9840 following the dovish comments of Fed’s officials, but failed to fix there and returned back below $0.9800. Today traders were disappointed by a bigger-than-expected Westpac consumer sentiment drop.
The general picture remains negative for the Aussie. In a short-term a break above the $0.9850 resistance could open the way to $0.9920 and even to $1.0000, but we recommend using the correction as a selling opportunity. Slide below $0.9700 would open the way for further losses to $0.9570.
Today watch the Fed's Bernanke testimony in Congress (14:00 GMT) and the FOMC meeting minutes (18:00 GMT). Policy tightening hints will pull the Aussie down.
Chart. Daily AUD/USD