Downside risk on AUD as focus turns to USD and the FOMC

This week's focus turns to U.S.A. with the upcoming USD CPI and FOMC Monetary Policy event risks. Expectation is towards the continuation of the Fed's USD 10-bln tapering and no change on the interest rate.

In terms of the AUD, The Australian Monetary Policy Meeting Minutes is expected to reiterate their recent stance on monetary policy. This can be thought of as a lack of a reason for AUD to continue higher unless the USD event risk proves to be bearish on the USD side.

Note: The initial target may be extended as the situation develops.

Disclaimer: This is my personal analysis and opinion. It must not be taken as a trading advice.