AUD/USD bulls back in play for the end of the week

• AUD/USD bulls are back in play into the Asian open.
• Bulls eye an extension on the hourly and daily time frames for the end of this and the start of next week. 

AUD/USD was ending the day higher by some 0.3% and had moved between a low of 0.7145 and a high 0.7223. The central banks were in focus again and both the BoE and ECB turned more hawkish overnight. Nevertheless, equities saw the glass as half full and sold off which hurt the higher beta currencies, such as AUD.

AUD/USD was falling throughout the New York session until the final hours where it met a key technical support area and started to correct, as illustrated in the technical analysis below. The US dollar was also making a come back which did not help the commodity bloc as traders began to question the reaction to the Federal Reserve, putting it down to holiday irregular markets and profit-taking.

Buy the rumour sell the fact

Many analysts believe that the US dollar can continue higher despite yesterday's setback. ''The dollar is clearly suffering from some “buy the rumour, sell the fact” price action right now. Looking ahead, we believe the underlying trend for a stronger dollar remains intact,'' analysts at Brown Brothers Harriman argued. 

Meanwhile, in a speech yesterday, the Reserve Bank of Australis's Governor, Phillip Lose, laid out three options in terms of the timing for the end of QE, as analysts at ANZ Bank spelt out as follows:

''Once option was to end QE altogether in February. For that to happen he flagged that stronger-than-expected data and an upgrade to the RBA’s November forecasts would be needed. With the November labour market data coming in much stronger than the RBA expected and a revision in other forecasts likely, an end to QE altogether in February is the most likely option in our view,'' analysts at ANZ Bank explained. 

AUD/USD technical analysis

• AUD/USD Price Analysis: Bulls looking for H1 continuation from daily support

As per the earlier analysis, the price has met hourly support and is now turning higher. This could lead to a continuation in the daily charts northerly trajectory as follows:

AUD/USD H1 chart

The hourly chart is moving in the right direction, as illustrated by the price action in the chart above from hourly support.