AUD/USD pushes higher toward 0.7350 as USD remains on the back foot

AUD/USD posts modest daily gains above 0.7300 on Wednesday.
USD struggles to find demand ahead of FOMC's policy announcements.
Labour market data from Australia will be released on Thursday.

Eren Sengezer FXStreet

The AUD/USD pair closed the first two days of the week modestly higher and preserved its bullish momentum on Wednesday. As of writing, the pair was up 0.5% on the day at 0.7338.

DXY stays in red below 93.00 ahead of FOMC

The broad-based USD weakness ahead of the FOMC's highly-anticipated monetary policy announcements seems to be helping the pair to edge higher. At the moment, the US Dollar Index (DXY) is down 0.23% on the day at 92.86. Furthermore, August Retail Sales data will be featured in the US economic docket.

Previewing the FOMC's September meeting, “we no longer expect yield curve control to be a Fed policy tool," said UOB Group economist Lee Sue Ann and noted that investors will be focused on the Updated Economic Projection.

Meanwhile, “while the Committee will recognise the improvement in domestic data (especially unemployment), Powell will still paint a dovish, uncertain outcome," said JP Morgan analysts. A dovish tone in FOMC Chairman Jerome Powell's press conference could force the USD to remain on the back foot.

In the early Asian session on Thursday, the Australian Bureau of Statistics will publish its labour market report. Investors expect the Employment Change to come in at -50K and a worse-than-expected reading could weigh on the AUD. Earlier in the week, the Reserve Bank of Australia reiterated that it will not increase the policy rate target until progress is made towards full employment and inflation.

Technical levels to watch for

AUD/USD

Overview
Today last price	0.7336
Today Daily Change	0.0034
Today Daily Change %	0.47
Today daily open	0.7302

Trends
Daily SMA20	0.7265
Daily SMA50	0.717
Daily SMA100	0.695
Daily SMA200	0.6762

Levels
Previous Daily High	0.7344
Previous Daily Low	0.7266
Previous Weekly High	0.7325
Previous Weekly Low	0.7192
Previous Monthly High	0.7416
Previous Monthly Low	0.7076
Daily Fibonacci 38.2%	0.7314
Daily Fibonacci 61.8%	0.7296
Daily Pivot Point S1	0.7264
Daily Pivot Point S2	0.7227
Daily Pivot Point S3	0.7187
Daily Pivot Point R1	0.7342
Daily Pivot Point R2	0.7382
Daily Pivot Point R3	0.7419

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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