AUD/USD consolidates near 0.6875 ahead of the key day


  • Aussie buyers cheered trade positive news but remain on the sideline ahead of the key FOMC.
  • Global risk sentiment continues to linger due to Draghi’s speech at Sintra.

Having been buoyed by the upbeat risk sentiment, mainly due to the trade positive news, the AUD/USD pair stabilizes near 0.6875 during the early Asian session on Wednesday. Investors remain cautious ahead of the key FOMC meeting decision while developments surrounding the US and China trade talks, coupled with geopolitical plays between the US and Iran, will also be followed for direction.

Despite dropping during early Tuesday, on the back of dovish RBA minutes and Aussie housing price data, the Australian Dollar (AUD) posted its first positive daily closing since June 07 as investors cheered welcome updates from Chinese media and the US President Donald Trump’s tweets concerning the trade talks at the upcoming G20.

However, the global benchmark for risk sentiment, the US 10-year treasury yield remains negative to 2.058% by the press time due to pessimism spread by the European Central Bank (ECB) President Mario Draghi at the closing ceremony of ECB Forum in Sintra.

While trade positive news renewed global risk sentiment yesterday, traders have started turned cautious ahead of today’s the Federal Open Market Committee’s (FOMC) monetary policy decision amid global central bankers’ run for easing.

While no change expectations give little importance to headline Fed rate decision, the quarterly growth and rate forecasts together with the Chairman Jerome Powell’s press conference will be observed closely to predict the US central bank’s future policy moves.

Technical Analysis

Unless clearing May 30 low near 0.6900, the Aussie pair can’t aim for 0.6940/45 resistance-area, needless to mention about 50-day simple moving average (SMA) level of 0.6988. With this, chances of its pullback to 0.6860, 0.6830 and then to the 0.6800 seem brighter.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD retreats after strong NFP, weak German data

EUR/USD is trading below   1.11 after US Non-Farm Payrolls beat expectations with 266K and mixed wage growth. Earlier, weak German data weighed on the euro. Updates on trade are awaited.

EUR/USD News

GBP/USD shrugs off strong NFP, focuses on UK elections

GBP/USD is trading below 1.3150 but off the post-NFP lows. The US gained more jobs than expected. The Conservatives remain in the lead ahead of the debate between PM Johnson and Labour leader Corbyn.

GBP/USD News

US recession? Not so fast, a calm look at the economy and currencies ahead of the NFP

Recent US economic indicators have been downbeat, but they include silver linings and are backed by robust consumption. Valeria Bednarik, Joseph Trevisani, and Yohay Elam...

Read more

Gold drops to fresh multi-day lows on upbeat NFP report

Gold faded an intraday bullish spike to the $1480 area and tumbled to fresh multi-day lows, around the $1465 region in reaction to upbeat US monthly jobs report.

Gold News

USD/JPY: bearish ahead of US employment figures

Japanese data missed the market’s expectations, triggering fresh concerns about the economy. Focus on US employment figures, market players anticipate dismal numbers. USD/JPY is technically bearish could break below the 108.00 level.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures