For almost the entire trading day on Wednesday, June 18, price dynamics AUD/USD had expressed direction, and the couple was in a narrow sideways channel. The analytics of the Forex Broker Company «FOREX MMCIS group» note that the reason for this was the lack of publications on the Australian economy, as well as prevailing market investors wait and see attitude before the evening announcement of the decision of the Federal Reserve's monetary policy of the USA.
Quotes of the pair AUD/USD rose 0.79%
So, Fed officials in its decision to some extent failed to meet expectations of investors expect that will be announced tighter monetary policy measures. Open Market Committee (FOMC) decided to keep its benchmark interest rate in the range 0,0-0,25%, which was to be expected, as well as the decision to reduce the purchase of bonds for the next 10 billion dollars a month, to a level of $ 35 billion.
"In its forecasts FOMC did not assure investors inclined to buy greenbacks: the forecast for U.S. gross domestic product for 2014 Committee sharply lowered to 2.1-2.3%, although in March figures were quoted at 2.8-3 0% ", - explained the analysts of «FOREX MMCIS group» (included in the Top Rated Forex Brokers of the Masterforex-V World Academy). GDP forecasts for 2015 and 2016 remained almost unchanged: in 2015 GDP will grow by 3.0-3.2%, while in 2016 the second - by 2.5-3.0%. At the same time, Fed officials predict a positive trend in the labor market: the unemployment rate forecast for the current year was reduced to 6,0-6,1% vs. 6.1-6.3% estimated in March. Expectations for Fed inflation target of 2.0% will be achieved in 2015, while this year is projected levels of 1.5-1.7%.
Nevertheless, the Head of the Federal Reserve Janet Yellen has exuded confidence about the further progress of the U.S. economy and said that after a weak first quarter, the economy begins to recover. At the same time it was noted that low interest rates reflect the impact of the crisis from which the U.S. is still only come out.
Thus, at the end of day quotes pair AUD/USD rose 0.79%, to the level of 0.9410, again approaching the multi-month highs.
On the graph are present supporting technical indicators and tools:
Simple moving average of closing prices (SMA 3), moved forward into three periods (3x3). Used to determine the current short-term market trends.
Simple moving average of closing prices (SMA 25), moved forward five periods (25x5). Helps identify long-term trends in the market.
Fibonacci levels - price levels (correction and expansion), based on Fibonacci ratios. Level becomes support if the price is approaching it from above and resistance - if the price is approaching it from below. Calculated two major Fibonacci level: one at 0,382 corrective movement (38.2% correction), and the other - at the level of 0,618 (61.8% correction) reversing the previous trend movement. Also used the 50% retracement level, as one of the most urgent for most currency pairs.
