The Australian Dollar is trading lower on Wednesday shortly before the release of the minutes from the U.S. Federal Reserve’s April meeting. A drop in demand for riskier assets is also weighing on the Aussie as well as a plunge in the cryptocurrency market.
The Fed publishes the minutes from its April meeting at 18:00 GMT, which could add to angst about inflation. The Fed kept its easy policies that meeting, but acknowledged that inflation could rise in coming months. The central bank maintains that these price pressures will be transitory.
At 17:01 GMT, the AUD/USD is trading .7757, down 0.0034 or -0.44%.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart, however, momentum is trending lower.
A trade through .7688 will change the main trend to down. A move through .7891 will signal a resumption of the uptrend.
The minor trend is also up. A trade through the minor swing top at .7814 will indicate the buying is getting stronger.
The main resistance is the retracement zone at .7769 to .7826.
The short-term support zone is .7711 to .7669.
Minor resistance comes in at .7790. Minor support is at .7751.
Daily Swing Chart Technical Forecast
The AUD/USD is expected to continue to straddle .7751 and .7790 over the short-run until investors get a clear signal about the direction of global interest rates and demand for risk.
The best bullish signal will be a sustained move over the main Fibonacci level at .7826. The best bearish signal will be a sustained move under .7669.
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