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AUD/USD jumps above 0.93 on Summers withdraw from FED race

FXstreet.com (Barcelona) - The AUD/USD foreign exchange rate is last quoted at 0.9318 bids amid a highly volatile environment off fresh session and weekly highs at 0.9348 recently printed in the interbank pre-open from previous weekly close Friday at 0.9245 after news hitting the newswires saying Fed candidate for governor Larry Summers has withdrawn name for Fed chairmanship, the WSJ said.

AUD/USD likely to consolidate before FOMC

The Aussie has moved around 100 pips higher this early Monday in the Asia-Pacific after news candidate for FED chairman has withdraw himself from race as he was considered hawkish enough to give tapering a big push, thus USD selling off at this moment across the board, just 2 days ahead of key Wednesday's FOMC. The pair is up more than +1% so far for the day, and “Consolidation of recent gains likely to continue before FOMC,” said IFRMarkets analyst Richard Sexton.

AUD/USD key technical levels

Immediate resistance to the upside for AUD/USD shows at recent session highs 0.9348, followed by Thursday's Asian session highs at 0.9355, and June 09 lows at 0.9386. To the downside, closest support lies at Wednesday's highs 0.9320, followed by Wednesday's lows at 0.9276, and past Monday's highs at 0.9243.

U.S Dollar selling stampede an over reaction?

The ongoing US Dollar sell-off in early Asia has different market commentators thinking this is an over reaction in very thin markets, and that once stops are all tripped, pairs such as USD/JPY should be a good buying opportunity.
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USD/JPY dumped below 98.75 on Fed Summers news

The USD/JPY foreign exchange rate is last trading at 98.65 bids down from Friday's close at 99.35, off early session lows at 98.55 printed on the back of Fed candidate for chairmanship Larry Summers withdrawing from position race, taking USD down across the board as he was considered hawkish, on a holiday today in Tokyo with markets closed.
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