The U.S. dollar is in a holding pattern ahead of the Fed. In fact you can see the Fed effect in Aussie dollar/U.S. dollar pair (AUD/USD) for the past 5 sessions.
Aussie Dollar – since early May we have been riding this short with a target of .85. After a wicked break today (-2%), we are in sight.
Fresh lows for the Aussie. With the rally in commodities and the Yen off today you would think Aussie would be finding a bid…try -1.75% weaker.
Yesterday traders saw the Aussie dollar lose ground as sentiment shifts away from risk only to flip today to more risk on, making the Aussies the strongest currency today.