AUD/USD: suffering on markets lack of risk appetite on higher VIX

AUD/USD has been hit with a higher VIX that reached above 18 in the US and along with a recovery in the DXY as markets remain uncertain as to what the outlook has in store for Central Banks as we approach the FOMC and BOJ this month.

"AUD should continue to enjoy support near term from Australia’s solid domestic growth story which is helping keep RBA easing talk on the backburner,"  explained analysts at Westpac focussing on domestic issues, but adding, "A steady Fed should chip away at USD so the 0.7450 area should continue to hold. But long AUD spec positions and global bond jitters - especially ahead of the 21 Sep BoJ - should cap rallies to the low 0.77s."

AUD/USD levels

Current price is 0.7468, with resistance ahead at 0.7468 (Daily Classic S2), 0.7472 (Daily High), 0.7473 (Weekly Classic S1), 0.7487 (Daily 100 SMA) and 0.7492 (Hourly 20 EMA). Next support to the downside can be found at 0.7464 (Daily Open), 0.7463 (Monthly Low), 0.7463 (Weekly Low), 0.7456 (Daily Low) and 0.7442 (Yesterday's Low). 

Westpac's AUD/USD 1-3 month: "While further gains to around 0.77 are possible during the month ahead, driven in part by the faltering US dollar and yield-chasing flows, the AUD is losing energy (perhaps a reflection of its declining yield advantage). By year end, there’s a case for a correction towards 0.74 if the Fed tightens in December as we expect. (13 Sep)."

The big bluff in the era of Central Bank monetary socialism