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Forex: AUD/USD suffers steep losses as choppy conditions continue

FXstreet.com (Barcelona) - The AUD/USD closed the day down 99 pips at 1.0279. It was a rough day for the majority of risk assets as market participants were not impressed by the latest ISM Manufacturing data out of the US, and the FOMC meeting failed to make a major difference. Later in the session we will see Building Permits (+1.3% estimates) out of Australia at 1:30GMT.

Price action on the charts remains extremely choppy with neither side being able to establish any type of follow through. According to Val Bednarik at FXStreet.com, “The AUD/USD trades near key 1.0260 support losing over 100 pips from the highs around 1.0370. The hourly chart shows indicators heading strongly south in oversold levels and after a limited upward correction, while 20 SMA heads strongly south above current price. In the 4 hours chart technical readings also signal a bearish continuation, with indicators crossing their midlines and price accelerating below 20 SMA."

She went on to add, “Failure to hold above 1.0300 has increased the bearish potential in the midterm, although steady losses below 1.0260 are now required to confirm a bearish continuation. Spikes up to 1.0335 should be understood as selling opportunities over the next sessions.”

Commodities Brief: Metals counter trend rally fizzles out as risk assets stumble

The recent FOMC meeting failed to impress market participants as the theme of the day was “risk off” across the majority of asset classes. It was a rough day for commodities in particular, with both the precious metals and base metals suffering sharp declines. Silver led the decline, falling 2.87% to finish at 23.62. At one point the metal did trade as low as 23.21, but was able to claw some of its losses back later in the NY session. Gold also suffered steep losses, closing down 1.22% to finish at 1457 (although it did trade as low as 1439). On a final note, it should be noted copper closed down 3.7%, finishing the day at 3.06 (it’s lowest daily close since June 2010.)
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NZD/USD is last at 0.8504, off fresh 2-day lows at 0.8479. The pair is down -0.72% from previous Asia-Pacific open yesterday, but about flat for the week, unable to get above Tuesday's weekly highs at 0.8586.
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