AUD/USD correction in tact, helped by Fed's Brainard

AUD/USD has been choppy in recent trade within a 40 pip range around comments from Fed's Brainard who highlighted that headwinds from abroad should matter to US policymakers.

Fed's Brainard advises prudence in the removal of policy accommodation

AUD/USD has been a risk-off play with markets searching for safe haven yields. the sell-off ensued from above the 0.77 handle and reached as low as 0.7493 today. As explained in The big bluff in the era of Central Bank monetary socialism, markets are concerned that the Fed could hike regardless of data and are fearful of the end of the current status quo and easy money while Central Banks begin to run out of options while the global economy remains weak.  

Overall, the markets took Brainard as dovish and was a balance to the recent hawkishness from other Fed officials, allowing for risk to recover to some extent offering a bid to the Aussie prior to her speaking and on final thoughts post the speech and Q&E.

Aussie ws up to 0.7558 at that point, from lows of 0.7518.

AUD/USD levels, bearish below 0.7755

Current price is 0.7558, with resistance ahead at 0.7563 (Daily High), 0.7578 (Daily Classic PP), 0.7596 (Hourly 200 SMA), 0.7602 (Daily 20 SMA) and 0.7603 (Weekly Classic PP). 

"While trading below the .7755 August peak the 200 day ma and the 2016 support line at .7408/.7395 will remain in focus," explained analysts at Commerzbank. 

Next support to the downside can be found at 0.7540 (Daily Open), 0.7538 (Weekly Low), 0.7538 (Yesterday's Low), 0.7533 (Hourly 20 EMA) and 0.7510 (Monthly Low).