The US Dollar weakened further after the release of the FOMC meeting minutes. The minutes did not reveal much new and were pretty much in line with the comments made in the past two months. The US central bank thought the economy was close to warranting a rate hike in September, but they wanted stronger evidence that a global economic slowdown will not knock the US economy off course.
EUR/USD price action remains rather choppy. It rallied to 1.1327 after the FOMC minutes release, but eventually fell back to 1.1270 in Asia. Short-term techs are mixed and suggest further consolidation is likely. The key levels to watch are 1.1240 & 1.1170 to the downside and 1.1327 & 1.1458 to the topside. GBP/USD fell sharply after dovish comments from the Bank of England, but quickly retraced the entire move and reached a fresh intraday high in the NY session. In Asia, Cable traded within a 1.5340-70 range and is currently consolidating around the highs. Resistance is now seen at 1.5410.
USD/JPY volatility remains very low. There was not much of a reaction to the FOMC minutes and the pair consolidated within a 15 pips range in the Asian session. Meanwhile, commodity currencies strengthened further, with the AUD/USD slowly approaching 0.73 and NZD/USD on its way to 0.67 (it briefly touched the level after the FOMC minutes release).
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