AUD/USD slips to six-day low after the Fed. Vulnerable to more selling

US dollar broadly higher

The US dollar is making broad gains today and got an extra, small lift after the FOMC statement.

That was enough to send AUD/USD to a six-day low, slipping below a minor double bottom at 0.8042.

The bigger driver for Australian dollar weakness today was the CPI report released in Sydney hours. It was at +0.6% q/q compared to +0.7% expected.

The fundamental weakness dovetails with the technical vulnerability of the run over the past six weeks. The uptrend since December 11 is now at risk. The pivot point in the next day or two is 0.8025.

For now, my inclination is to expect a bounce if only because the selling is coming into month-end and looks like part of a broad profit-taking trade, but the day ahead will be telling.