AUD/USD edging lower below 0.9400

FXstreet.com (Edinburgh) -The Aussie dollar continues to retrace the post-FOMC spike on Wednesday, with the AUD/USD consolidating the correction lower below 0.9400 the figure.

AUD/USD rejected from 0.9540

The resumption of risk appetite plus negative bias in the USD have propelled the pair from multi-year lows below 0.8900 in early September to the boundaries of 0.9540 after the recent Fed fiasco. The inability of a sustained follow through recent highs leaves now the door open for a deeper pullback ahead of the next RBA meeting in early October. Strategists G.Yu and G.Berry at UBS remain bullish on the pair, arguing “Resistance is at 0.9529, a break above which would extend the strength to 0.9715. Support is at 0.9286 and 0.9211”.

AUD/USD levels to watch

As of writing the pair is down 0.31% at 0.9361 with the next support at 0.9343 (low Sep.23) and then 0.9336 (low Sep.18). On the flip side, a breakout of 0.9459 (high Sep.20) would bring 0.9524 (high Sep.19).

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