AUD/USD eases but losses limited ahead of FOMC decision - ybarracopievere
AUD/USD was a notch weaker on Tuesday, but losses seemed to remain limited, as market players were expecting to see what the Federal Reserve's response to the Recent epoch scend in bond yields would follow, atomic number 3 the central bank concludes its two-day policy meeting on Wednesday.
"The grocery is genuinely seance tight waiting for the Fed decision, because the huge move in U.S. bond yields has been so key that the grocery real needs to see what they plan to suffice," Steven Dooley, APAC currentness strategist at West Union Business Solutions, was quoted as saying away Reuters.
Grocery consensus points to no change in Fed's monetary policy settings, but silence, some analysts expect that the rely might effort to simmer down bond markets, where yields have surged nearly 60 basis points since the net FOMC meeting.
"Notwithstandin, if they start to take some kind of insurance policy action, like purchasing bonds further down the curve to push yields lower, past we could see the U.S. dollar move sharply lower and the Australian dollar press higher," Dooley added.
Meanwhile, the minutes from Federal Reserve Bank of Australia's March insurance meeting showed that rising commodity prices would probably not advance inflation in Australia, unless a significant labor market tightening is determined. Policy makers also noted that wage growth would have to glucinium materially higher than it currently is, so that puffiness bum accelerate. That is why significant pecuniary stick out would be needed for some time, the minutes stated. The publication had a rather limited impact connected the Aussie.
As of 10:17 GMT along Tuesday AUD/USD was edging down 0.34% to trade at 0.7728, while moving within a unit of time range of 0.7711-0.7756. The currency pair has edged astir 0.31% so far in March, following a 0.88% surge in Feb.
In terms of system calendar, today market players will be attentive to the February data on America retail sales and industrial output due out at 12:30 Greenwich Mean Time and 13:15 GMT respectively.
Bond Yield Spread
The spread between 2-year Australian and 2-year US adhesion yields, which reflects the menses of funds in a short condition, equaled -7.0 fundament points (-0.070%) as of 9:15 GMT on Tuesday, pop from -6.3 basis points on March 15th.
Daily Pivot Levels (traditional method of calculation)
Midmost Pivot – 0.7745
R1 – 0.7785
R2 – 0.7815
R3 – 0.7855
R4 – 0.7894
S1 – 0.7715
S2 – 0.7675
S3 – 0.7644
S4 – 0.7614
Author: Miroslav Marinoff, a intelligence editor at TradingPedia, is engaged with perceptive and coverage on the tendencies in the Extrinsic Exchange Market and the US Gillyflower Market.
Source: https://www.tradingpedia.com/2021/03/16/forex-market-aud-usd-eases-but-losses-limited-ahead-of-the-fomc-policy-decision-rba-minutes-with-limited-impact/
Posted by: ybarracopievere.blogspot.com
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