Aussie Breakout Holds Post-FOMC Minutes

Aussie Breakout Holds For NowAUDUSD continues to hold above the .6520 level for now following the breakout earlier this week. It looks as though the pair has overcome the hurdle of the FOMC minutes and is now set to continue higher. Yesterday, the minutes revealed that Fed members remain concerned around upside inflation risks and were still willing to use further tightening if necessary, with no mention of imminent rate cuts seen.Fed Seen Holding Ahead of H1 2024 CutHowever, it seems that with the recent October CPI reading showing a further fall in inflation, the minutes have lost some of their potency. The Fed is now widely expected to keep rates on hold through year end with traders currently pricing in a rate cut as the next adjustment to monetary policy, due in H1 2024.Data in FocusWith USD undergoing a strong correction lower, there is room for AUD to continue higher near-term. With plenty of US data due through the rest of the week there is plenty of opportunity for fresh USD downside to drive the pair higher. Additionally, if we see any uptick in tonight’s Aussie PMI data this should help further advance the breakout.Technical ViewsAUDUSDThe breakout AUDUSD above the .6520 level has stalled for now. However, with the pair holding a retest of the level from above, the focus remains on further upside near-term in line with bullish momentum studies readings. While above here, the focus is on a test of the bearish trend line ahead of the next structural resistance at the .6681 level. Notably, we have an active buy signal in the signal centre today set at .6485 suggesting a preference to buy any dips from current levels.