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Drops To Multi-Month Lows Post-FOMC

AUD

A more hawkish than expected FOMC rate announcement saw the greenback jump AUD/USD spike lower, the pair dropped to lows of 0.7607 and held around here into the close. Last up 6 pips at 0.7616.

  • From a technical perspective AUD/USD broke to new multi-month lows Wednesday, bottoming out at 0.7609 and the lowest level since mid-April. This further highlights the bearish risk. A resumption of weakness would open 0.7586, Apr 13 low and 0.7532, Apr 1 low and a key support. Initial resistance is at 0.7776, Jun 11 high and 0.7813, May 18 high. A move above the latter would ease bearish pressure.
  • The focal point of today's domestic docket will be RBA Governor Lowe's latest address, which is titled "From Recovery to Expansion." Participants will be keen to see if Lowe adds any further clues re: the direction of the decisions that are due to be made at the Bank's July meeting. Also due today are May labour market figures, the economy is expected to have added 30k jobs after losing 30.6k in April.

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