AUD/USD Price Analysis: Soars to near 0.6500 ahead of FOMC decision

AUD/USD rallies to near 0.6500 as the PBoC maintains a dovish interest rate policy.
The Fed is expected to keep interest rates unchanged at 5.25-5.50% as the US inflation has been consistently falling.
AUD/USD rebounds after discovering buying interest near the horizontal support around 0.6364.

Sagar Dua FXStreet

The AUD/USD pair delivered a rally to near the psychological resistance of 0.6500 in the late European session. The Aussie asset picked strength after the People’s Bank of China (PBOC) kept its one-year and five-year Loan Prime Rate (LPR) unchanged at 3.45% and 4.20% respectively.

The PBoC was expected to maintain a dovish interest rate policy as the Chinese economy is under pressure due to upside deflation risks. Further policy expansion would support the economy to find footing amid a bleak economic outlook.

Meanwhile, the show-stopper event for the FX domain is the interest rate decision by the Federal Reserve (Fed). The US central bank is expected to keep interest rates unchanged at 5.25-5.50%. As the US inflation has been consistently falling while maintaining economic resilience, the Fed has the opportunity to skip the policy tightening regime for the second time in its current tightening cycle.

AUD/USD rebounds after discovering buying interest near the horizontal support plotted from August 17 low around 0.6364 on a two-hour scale. The Aussie asset stabilizes above the 20-day Exponential Moving Average (EMA), which trades around 0.6340. Potential resistance is plotted from August 15 high at 0.6522.

The Relative Strength Index (RSI) (14) jumps above 60.0, which indicates that the bullish impulse has been triggered.

A decisive break above August 15 high around 0.6522 will drive the asset to August 9 high at 0.6571. Breach of the latter will drive the asset towards August 10 high at 0.6616.

On the flip side, fresh downside would appear if the Aussie asset will drop below August 17 low around 0.6360. This would expose the asset to the round-level support of 0.6300 followed by 03 November 2022 low at 0.6272.

AUD/USD two-hour chart

AUD/USD

Overview
Today last price	0.6484
Today Daily Change	0.0030
Today Daily Change %	0.46
Today daily open	0.6454

Trends
Daily SMA20	0.6432
Daily SMA50	0.6547
Daily SMA100	0.6613
Daily SMA200	0.6701

Levels
Previous Daily High	0.6474
Previous Daily Low	0.6428
Previous Weekly High	0.6474
Previous Weekly Low	0.6378
Previous Monthly High	0.6724
Previous Monthly Low	0.6364
Daily Fibonacci 38.2%	0.6456
Daily Fibonacci 61.8%	0.6445
Daily Pivot Point S1	0.643
Daily Pivot Point S2	0.6406
Daily Pivot Point S3	0.6384
Daily Pivot Point R1	0.6476
Daily Pivot Point R2	0.6498
Daily Pivot Point R3	0.6522

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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