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Nov 07 - 03:55 PM

AUD/USD - Fed Cut, Softer Yields, Commodities Lent Longs A Hand

By Christopher Romano  —  Nov 07 - 02:15 PM
  • NY opened near 0.6630 after 0.6565 traded in Asia, rally extended 0.66875

  • US yield US2YT=RR drops drove broad based US$ selling, lifted AUD/USD

  • USD/CNH drop to 7.1420 & equity ESv1 gains reinforced US$ selling theme

  • Commodity HGv1, XAU= gains helped to buoy the Australian dollar

  • Pair slipped off the high, sat near 0.6670 into the Fed statement

  • Fed cut by 25bps , US$ firmed after statement, AUD/USD dipped below 0.6660

  • Pair remained up +1.37% which helped technicals lean bullish

  • RSIs imply upward momentum & AUD/USD held above 21-DMA, daily cloud base

  • November University of Michigan survey is a key data risk Friday

  • For more click on FXBUZ

Source:
Refinitiv IFR Research/Market Commentary

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