27 Sep 2013
AUD/USD falling on George hawkish comments
FXstreet.com (Athens) – The AUD/USD is under pressure since the early opening of the Asian trading session mainly due to the Fed’s George hawkish comments.
George was hawkish enough to drag the AUD/USD on the ‘down’ level
The AUD/USD has been in downtrend mode for four consecutive days, but today seems to be mostly wounded by Fed’s Kansas George hawkish speech. George told through global news wires that “Delaying QE "tapering" may threaten FOMC credibility. Also, added she opposed more stimulus at every Fed meeting this year, while Fed should alter policy to "more normal conditions" as clear job gains warrant reduced bond-buying.” What’s more, she also mentioned that “she would start with a $15 Bln Taper. Sees inflation expectations as "pretty well anchored", while she hopes to see a "diverse" Federal Reserve Board of Governors.” Finally, she said “that there is excessive risk taking in the leveraged lending market. One of few voters discussing the costs of stimulus.” We do consider that Kansas City Fed President Esther George was hawkish enough and alongside with S&P 500 futures heavy sinking across the board, it would more than plausible that risk-appetite would be further hurt, i.e. “Aussie” in the downwards play.
Technical and Strategical Analysis on AUD/USD
Karen Jones, Head Technical Analyst at Commerzbank suggests that “the AUD/USD continues to slide back towards the .9318 July high. While it is likely to consolidate here, it needs to hold over the .9318 level. Failure here will imply a loss of momentum and potential for a slide back to the .9233 August high, then .9160 55 day ma.”
George was hawkish enough to drag the AUD/USD on the ‘down’ level
The AUD/USD has been in downtrend mode for four consecutive days, but today seems to be mostly wounded by Fed’s Kansas George hawkish speech. George told through global news wires that “Delaying QE "tapering" may threaten FOMC credibility. Also, added she opposed more stimulus at every Fed meeting this year, while Fed should alter policy to "more normal conditions" as clear job gains warrant reduced bond-buying.” What’s more, she also mentioned that “she would start with a $15 Bln Taper. Sees inflation expectations as "pretty well anchored", while she hopes to see a "diverse" Federal Reserve Board of Governors.” Finally, she said “that there is excessive risk taking in the leveraged lending market. One of few voters discussing the costs of stimulus.” We do consider that Kansas City Fed President Esther George was hawkish enough and alongside with S&P 500 futures heavy sinking across the board, it would more than plausible that risk-appetite would be further hurt, i.e. “Aussie” in the downwards play.
Technical and Strategical Analysis on AUD/USD
Karen Jones, Head Technical Analyst at Commerzbank suggests that “the AUD/USD continues to slide back towards the .9318 July high. While it is likely to consolidate here, it needs to hold over the .9318 level. Failure here will imply a loss of momentum and potential for a slide back to the .9233 August high, then .9160 55 day ma.”