AUDUSD Regains the 50 Hour MA
The Aussie dollar trades flat during the Asian trading session at 0.6872, ahead of the FOMC policy update. Australian economy is at risk from heightened global uncertainty and a slowdown in China. The six months annualized growth rate in the Westpac– Melbourne Institute Leading Index, which indicates the likely pace of economic activity relative to trend three to nine months into the future, rose slightly from –0.49% in April to –0.45% in May. USD got a lift on Friday after better retail sales and industrial production. Economist’s boosted bets of an RBA rate cut in July, and the yield on the Australian bond yield fell to a record low of 0.992% after the higher than expected jobless rate.
Australian dollar managed to rebound yesterday from 0.6805 low to 0.6880 breaking above the 50 hour moving average but stopped at the 100 hour moving average resistance.. Bears are in control and an attempt to 0.6730 the yearly low looks possible if AUDUSD breaks below the 0.68 zone. On the upside immediate resistance now stands at the previous support at 0.6893 at the 50 hour moving average while key resistance stands at 0.6994 where the 50 day moving average crosses. The pair looks vulnerable below the 0.70 mark and an attempt to yearly low looks possible.