FXstreet.com (Córdoba) - Gold trades near the same price it had at the beginning of the day around 1,123 an ounce. The metal fell earlier to test the support at 1,110 and rebounded. Gold recovered later despite Greenback's rally. AUD/USD fell to 0.9030, intra-week low.
The KBC Market Research Desk affirms: Today market's focus is concentrated on how currencies will react after the FOMC meeting. If the Fed's positive assessment on the economy spurs unwinding of dollar shorts and a further return of money into stocks, that would be negative for gold.
The rise in commodities is not helping the Australian Dollar that is falling sharply against the Dollar and trades at the lowest level in four days. AUD/USD bottomed a few hours ago at 0.9033 and currently trades at 0.9050, 1.23% below today's opening price.
James Chen, chief technical analyst at FX solutions says: AUD/USD has formed a triangle consolidation pattern after having broken down below a longstanding uptrend line extending from March lows. After this trendline breakdown, price consolidated sideways and formed this triangle, failing to follow-through to the downside for the time being. This occurs after price fell from a 15-month high hit in mid-November. A strong breakdown of this triangle should lend strength to a potential bearish trend reversal of the previously-prevailing uptrend. In this event, the 0.8800 price region should serve as an initial downside support target.