News and Market Analysis

FOMC – The day ahead
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The Aussie is struggling to stabilize ahead of FOMC. Currently sitting at  0.7304, as it pulls back from its two week high. With no data release in Asia this could be a day of caution for AUD traders.

Federal Reserve monetary policy announcement to come out today. The question is how will it impact the dollar? Right now we see Wall St flooded with bulls. We are starting to see a the same in the dollar as traders flock to the dollar and we see all majors start to pullback. The same is not true with the JPY however.  USD/JPY has had its lowest drop since late August on the back of strong Japanese trade numbers. But not much action is expected until the FOMC announcement later today. For the JPY consider resistance at 106.00 followed by 106.35-106.40. Otherwise it finds support at 105.1 and 104.60.104.70.

Gold is flirting with the magic $2000 psychological level. But anxious gold traders will be waiting on the results of the FOMC. A more dovish outcome would likely see the yellow metal test these levels. However better than expected announcement could see it fall to $1920.

 

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