The Federal Open Market Committee (FOMC) said in its statement yesterday that the central bank will buy longer-term U.S. government debt and purchase an additional $750 billion of agency mortgage-backed securities, in a policy known as quantitative easing. In its statement at the conclusion of its 2 day policy meeting, the Fed indicated that it is more pessimistic about economic outlook.
In my opinion Dollar weakness may not last long given the worsening economic conditions throughout the world. Dollar will continue to be seen as the safest store of value at this time of contracting global growth and its role as a funding currency outside of Europe will lend it support during the crisis.
After an exceedingly volatile price-spike for AUDUSD, the price of this pair has remained floating in the over-bought territory on both Stochastic and Williams charts. At the same time resistance holding very well at 0.6847. All this signal that a downward correction may occur in the coming hours. Going short on AUDUSD might be the right strategy for today.
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