Commodities were performing better, allowing for the Aussie to remain resilient above 0.7620 in a subdued session ahead of key events in the US. All eyes remain on Jackson Hole Symposium, where Fed’s Chairwoman Yellen will have a speech ahead of September’s FOMC meeting. Markets will get more volatile at the end of this week, as it react to hints of rate hiking potential.
USD/JPY and EUR/USD are the two biggest pairs in play tonight with both near key levels and if the market reads Yellen’s speeceh as dovish critical levels main be broken. USD/JPY has been holding Y100 and this level would come into play whilst 1.1350 for the EUR/USD is capping its attempt to rally recently.
AUD/USD is likely to retest 0.7750 in the coming week if the dovish outcome is produced whilst if September is put firmly on the table by Yellen we might see the recent uptrend broken.
Stocks are also at tipping points after stalling for the last two weeks at year highs and if a surprise comes this may prompt a correction that is both technically needed and in line with fundamental reaction to the US raising rates.
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