AUDUSD: Bank Sentiment Divergence Between The Feds and The RBA
Fundamentals
Succumbing to the global policy unwinding pressure and rising inflation fears, the RBA's dovishness led to the AUD sell off against the USD. The drop is cushioned by the decrease in volume as traders wait for Fed's FOMC meeting this week. Trades expects the Feds to announce taper during the meeting this week.
Technicals
We are essentially waiting for a pull back as traders take profit to enter. The levels considered are notable areas of supply / demand imbalances which adds confluence to the fib levels.
Succumbing to the global policy unwinding pressure and rising inflation fears, the RBA's dovishness led to the AUD sell off against the USD. The drop is cushioned by the decrease in volume as traders wait for Fed's FOMC meeting this week. Trades expects the Feds to announce taper during the meeting this week.
Technicals
We are essentially waiting for a pull back as traders take profit to enter. The levels considered are notable areas of supply / demand imbalances which adds confluence to the fib levels.
Comment:
Price rejected supply zone as anticipated.
Comment:
China's Inflation figures came out higher than expected. This would mainly affect the overall risk sentiment of the global economy. Hence, risk-on currencies such as the AUD & NZD would fall, and the risk-off currencies like the USD would go up.