Following the FOMC minutes released on 7th April 2022, key points to highlight were that members agreed to reduce balance sheet with a cap of 95 billion a month, were would have preferred a 50 basis point increase, and that one or more 50 basis point increases in the target range could be appropriate at future meetings.
This resulted in the DXY rising signficantly, testing and breaching the 99.50 level, moving towards 100
This resulted in a drop in the AUD/USD, retracing from 0.7650 towards support and breaking below 0.7500. Currently at 0.7447, short term trend of the AUD/USD is towards the downside.
Look for rejection of 0.7500 resistance and more selling opportunities towards next support area of 0.7300
This resulted in the DXY rising signficantly, testing and breaching the 99.50 level, moving towards 100
This resulted in a drop in the AUD/USD, retracing from 0.7650 towards support and breaking below 0.7500. Currently at 0.7447, short term trend of the AUD/USD is towards the downside.
Look for rejection of 0.7500 resistance and more selling opportunities towards next support area of 0.7300
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