AUD/USD (current price: 0.7688)
The Aussie had two strong up days in a row, as the Minutes of the previous RBA Monetary Meeting were more hawkish than expected, hinting at a possible end to the easing cycle. The pair is still below its prior high near 0.78, although the Australian Dollar has been relatively strong in recent weeks, despite the weakness this morning. The ongoing global correction in risk assets is a danger for the short-term trend, with strong support found at 0.75 and below that near 0.745.
Our assessment: The pair is trading above the rising 200-day MA, signaling an advancing long-term trend, but a FED rate hike might turn the tide, and the Chinese weakness also threatens the Aussie.
