AUD/USD Hits Support Trendline

The AUD/USD pair, like most risk and commodity pairs, took a tumble at the end of the day as commodities such as oil and copper moved lower, in conjunction with equities that couldn’t sustain the limited push higher following the FOMC meeting. Looking at the chart below we see the pair moved abruptly lower after the NY close and found some support at the trendline.

Although the pair has rebounded some, it was unable to sustain the bounce it has received from better than prior New Home Sales in Australia or better New Zealand Consumer Confidence.

As commodities continue to trade softer, it will be interesting to see if the trendline can support another move down. Liquidity and participation should be improved as Tokyo returns to work, however a break of the trendline could bring the 85 cent handle into play.

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