AUD/USD recovers modestly from lows, trades in red near 0.6840 ahead of FOMC


  • Westpac Leading Index in Australia drops to -0.28% in August.
  • US Dollar Index clings to modest gains, stays below 98.50.
  • Federal Reserve is expected to announce a 25 basis points rate cut later today.

The AUD/USD came under pressure during the Asian trading hours on Tuesday pressured by the Reserve Bank of Australia's (RBA) dovish tone in its meeting minutes but was able to stage a recovery and close the day with small gains boosted by the selling pressure surrounding the USD. However, the pair struggled to stretch higher on Wednesday and is now trading at 0.6840, erasing 0.35% on a daily basis.

Earlier today, the Westpac Leading Index in Australia slumped to -2.8% in August from +0.2% (revised up from +0.14%) in July and put additional weight on the AUD's shoulders.

USD waits for FOMC decision, Powell presser

On the other hand, despite the upbeat industrial production data from the US yesterday, the US Dollar Index lost its traction on easing concerns over the possible negative impact of rising crude oil prices on the global economy and erased Monday's losses. However, ahead of the Federal Reserve's policy announcements and Federal Open Market Committee (FOMC) Chairman Jerome Powell's remarks, the index is posting modest gains near 98.40, keeping the bearish pressure on the pair intact.

Previewing the FOMC decision, “We think that the bar for a hawkish surprise is now higher compared to only a couple of weeks ago suggesting limited scope for a USD-positive reaction and a major sell-off in UST after the announcement,” said ING analysts.

Technical levels to watch for

AUD/USD

Overview
Today last price 0.6839
Today Daily Change -0.0027
Today Daily Change % -0.39
Today daily open 0.6866
 
Trends
Daily SMA20 0.6801
Daily SMA50 0.685
Daily SMA100 0.69
Daily SMA200 0.701
Levels
Previous Daily High 0.6871
Previous Daily Low 0.6829
Previous Weekly High 0.6895
Previous Weekly Low 0.6837
Previous Monthly High 0.6869
Previous Monthly Low 0.6676
Daily Fibonacci 38.2% 0.6855
Daily Fibonacci 61.8% 0.6845
Daily Pivot Point S1 0.684
Daily Pivot Point S2 0.6813
Daily Pivot Point S3 0.6798
Daily Pivot Point R1 0.6882
Daily Pivot Point R2 0.6897
Daily Pivot Point R3 0.6924

 

 

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