The AUD/USD started in Sydney at $0.7817, little changed from yesterday’s open, after offshore markets witnessed a $0.7774 to $0.7839 range, the US dollar coming under mild pressure following a more dovish than expected FOMC. It was another quiet day locally, with no significant economic data. Broad US dollar weakness aided aussie-dollar up to $0.7826 around mid-morning and it then followed up with another move to a high of $0.7834. The move ran aground soon after and aussie-dollar then consolidated through the rest of the morning. The aussie slid to another low of $0.7793 in the afternoon when the market reacted to headlines of S&P warning of risks to Australia’s AAA rating although a closer look at the report showed S&P’s credit analyst saying there was no immediate threat to the rating. Aussie-dollar recovered quickly back above $0.7800 after that and last traded at $0.7810. Resting sell orders are noted between $0.7840 to $0.7850, stops are building above $0.7855. Initial resistance lies at $0.7839 (yesterday’s high), above there $0.7882 marks the 38.2% fibo retracement of the $0.8295 to $0.7626 fall, hourly support lies at $0.7770.
