AUD/USD to break below 0.7800?

• AUD/USD turns around and threatens the 0.7800 bull's commitments again.
• AUD/USD bears will target the 200/100-D SMA convergence. 

AUD/USD turned around into the close of the NY session when US yields and the DXY went bid in a reversal of the post-FOMC minutes offer. Currently, AUD/USD is trading at 0.7807, down 0.00% on the Asian day, having posted a daily high at 0.7814 and low at 0.7806.

FOMC Minutes: officials saw an appreciable risk of inflation lag to target

AUD/USD has moved back from the 0.7879 level that was scored in the NY shift with the DXY getting back onto the 90 handle and US 10-yr yields at 2.9537%. Initially, markets considered the minutes as not as blatantly hawkish with some members, albeit execting the 2% inflation target to be reached in 2018, were also seeing the potential  appreciable risk of inflation lag to the target. 

However, as time went by, considering that this FOMC January 30-31 meeting was in fact before the release of the strong figures on average hourly earnings (+2.9%), the better-than-expected readings in the CPIs, had this been factored in, the picture would have been far more hawkish and the trade was switched up. For the day ahead, China returns but there is a lack of domestic events scheduled until retails sales tomorrow for Australia.

AUD/USD levels

Looks as though the 0.7800 level is about to give way while RSI on the hourly sticks is entering oversold territory with the price just a handful of pips away from scoring a key level below. The bears will look to hunt down 200 and 100-D SMAs that are converging at around 0.7773.