AUD/USD aims to surpass 0.6640 ahead of Fed/RBA policy, US ISM PMI in focus

The AUD/USD pair is looking to surpass the crucial resistance of 0.6640 in the Asian session. The Aussie asset has stretched its rally as the US Dollar Index (DXY) is struggling in extending its recovery above 101.80. The Australian Dollar will be required immense strength for conquering the 0.6640 amid anxiety ahead of the monetary policy by the Federal Reserve (Fed).

S&P500 futures are having some gains in the Asian session after a bullish Friday, portraying positive market sentiment. An attempt of rescuing First Republic Bank by private lenders has eased US banking jitters. JP Morgan and PNC are submitting a final bid for First Republic Bank in Federal Deposit Insurance Corporation (FDIC) auction.

The US Dollar Index (DXY) is facing barricades in extending its rally above 101.80 as investors are divided over further movement. One more interest rate hike of 25 basis points (bps) from the Fed is widely expected as the United States' core inflationary pressures are critically persistent. However, investors will keenly focus on guidance on interest rates.

But before that, US ISM Manufacturing PMI will keep USD Index in action. Investors are anticipating mild gains in PMI figures to 46.6 vs. the prior release of 46.3. New Orders Index data that indicates forward demand is expected to jump to 45.5 from the former release of 44.3.

On the Australian Dollar front, Tuesday’s interest rate decision by the Reserve Bank of Australia (RBA) will be in focus. Considering the fact that Australian inflation is declining consistently for the past three months and RBA policymakers are anticipating a slowdown in the economy ahead, a continuation of the pause is widely expected.