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AUD/USD Price Forecast: Sticks to post-Aussie CPI losses near 0.7160; focus remains on Fed

  • AUD/USD attracts some sellers in reaction to softer-than-expected Australian inflation figures.
  • Geopolitical uncertainties underpin the safe-haven demand and further weigh on spot prices.
  • The technical setup favors bullish traders as the focus remains glued to the FOMC rate decision.

The AUD/USD pair continues with its struggle to conquer the 0.7200 mark and attracts some sellers during the Asian session on Wednesday, following the release of Australian consumer inflation figures. The data falls short of expectations and exerts some pressure on the Australian Dollar (USD). Furthermore, the US-Iran peace talks uncertainty underpins the safe-haven US Dollar (USD) and drags spot prices to the 0.7160 area, though the downside remains cushioned ahead of the FOMC policy update.

The US Federal Reserve (Fed) is scheduled to announce its decision at the end of a two-day meeting later today and is widely expected to leave interest rates unchanged. The market focus, meanwhile, will be on the post-meeting press conference, where comments from the outgoing Fed Chair Jerome Powell will be scrutinized for cues about the future policy path. This, in turn, will play a key role in influencing the near-term USD price dynamics and providing a fresh impetus to the AUD/USD pair.

From a technical perspective, spot prices remain confined in a familiar range held over the past two weeks or so. This might still be categorized as a bullish consolidation phase against the backdrop of a strong rally from the March swing low, suggesting that the broader upswing remains supported despite the latest pullback. That said, momentum indicators are mixed, making it prudent to wait for a sustained breakout through the trading range before placing fresh bullish bets on the AUD/USD pair.

The Relative Strength Index (RSI) is hovering just below the 50 line, and the Moving Average Convergence Divergence (MACD) histogram is flattening after a recent positive phase. This hints at a pause rather than a confirmed reversal while price action stays anchored above the underlying trend support near the 0.7160/0.7150 area. A more meaningful structural demand could emerge at the 200-period SMA near 0.7043, where buyers are likely to defend the broader bullish structure on any deeper pullback.

(The technical analysis of this story was written with the help of an AI tool.)

AUD/USD 4-hour chart

Chart Analysis AUD/USD

Australian Dollar Price Today

The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the strongest against the New Zealand Dollar.

USDEURGBPJPYCADAUDNZDCHF
USD0.08%0.06%0.03%0.05%0.29%0.42%0.02%
EUR-0.08%-0.03%-0.06%-0.04%0.23%0.35%-0.07%
GBP-0.06%0.03%-0.04%-0.04%0.23%0.37%-0.05%
JPY-0.03%0.06%0.04%0.00%0.26%0.41%0.03%
CAD-0.05%0.04%0.04%-0.01%0.26%0.39%-0.02%
AUD-0.29%-0.23%-0.23%-0.26%-0.26%0.14%-0.31%
NZD-0.42%-0.35%-0.37%-0.41%-0.39%-0.14%-0.42%
CHF-0.02%0.07%0.05%-0.03%0.02%0.31%0.42%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote).

Author

Haresh Menghani

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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