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AUD/USD is saved from losing 0.93 thanks to the Fed

The Australian dollar dropped like all other currencies in the wake of the superb GDP growth report from the US. At 4% annualized vs. 3% expected, the greenback was  on a roll.

However, the Australian dollar’s resilience that we’ve seen of late continued very nicely in the second major US event of the day, and the Aussie dollar is back to the range.

The Federal Reserve  remained  worried about employment and not overly excited about inflation. More importantly, a rate hike in the US is still far off, or in the Fed speak, a “considerable” amount of time down the road. The 6th taper was priced in.

This may all change in September, assuming the current economic continues at the same clip, but for now, this dollar strength is not enough against the Aussie. With a 9 As credit rating at home and a relatively stable Chinese economy, the  money continues flowing into Australia and keeps the A$ bid.

So,  AUD/USD fell as low as 0.9302, which was the lowest since June 5th, but didn’t stay there for too long. After the Fed, the pair is back to 0.9326, and is at the verge of the previous range, which is basically above the 0.9330 level.

Here is the daily chart with all the levels:

AUDUSD saved from 93 cents after the FOMC statement July 2014

 

For more, see the AUD/USD  prediction.

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.