The AUD/USD pair fell on Wednesday as traders still struggle to break above the 1.05 level for any significant amount of time. The pair seems to be still reeling from the recent drop, and it appears that the 1.05 level is going to be very resistive. A fall from here wouldn’t be a surprise, but the Friday announcement by the Federal Reserve will be key for this pair, as any hint of QE3 in the US would send this pair skyrocketing as investors attempt to find yield in other countries. Unless that happens, the 1.05 area could be a temporary cap on this market.
Written by FX Empire