AUD/USD remains stuck in a range below 0.6900 handle, FOCM in focus

Bulls fail to capitalize on the overnight bounce led by renewed trade optimism.
A subdued USD demand, despite recovering bond yields, extended some support.
The market focus remains on the latest FOMC policy decision, due later today.

Haresh Menghani FXStreet

The AUD/USD pair failed to capitalize on its early uptick to weekly tops and seesawed between tepid gains/minor losses through the mid-European session on Wednesday.

The pair struggled to build on the previous session's solid rebound from multi-month lows and remained capped below the 0.6900 handle as investors seemed to hold back from placing any aggressive bets ahead of the key event risk - the latest FOMC monetary policy update.

It is worth mentioning that the China-proxy Australian Dollar a goodish lift on Tuesday after the US President Donald Trump and his Chinese counterpart Xi-Jinping agreed to meet next week on the sidelines of G20 summit in Japan.

The uptick, however, lacked any strong bullish conviction, though a subdued US Dollar demand – despite a goodish pickup in the US Treasury bond yields, extended some support and led to a range-bound price action through the early part of Wednesday’s trading session.

Meanwhile, the US central bank is widely expected to leave interest rates unchanged but could lay the groundwork for interest rate cuts in coming months. With two rate cuts already priced in, any hawkish comments might reignite a broad-based USD rally and turn the pair vulnerable to resume its well-established bearish trend.

Technical levels to watch

AUD/USD

Overview
Today last price	0.6873
Today Daily Change	-0.0002
Today Daily Change %	-0.03
Today daily open	0.6875

Trends
Daily SMA20	0.693
Daily SMA50	0.6994
Daily SMA100	0.7055
Daily SMA200	0.7113

Levels
Previous Daily High	0.6882
Previous Daily Low	0.6831
Previous Weekly High	0.7009
Previous Weekly Low	0.6861
Previous Monthly High	0.7062
Previous Monthly Low	0.6862
Daily Fibonacci 38.2%	0.6863
Daily Fibonacci 61.8%	0.6851
Daily Pivot Point S1	0.6843
Daily Pivot Point S2	0.6812
Daily Pivot Point S3	0.6792
Daily Pivot Point R1	0.6894
Daily Pivot Point R2	0.6914
Daily Pivot Point R3	0.6946

Author

Haresh Menghani

FXStreet

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

EUR/USD tests 1.1800 barrier above 50-day EMA

EUR/USD gains ground after three days of losses, trading around 1.1790 during the Asian hours on Thursday. The 14-day Relative Strength Index momentum indicator at 47 (neutral) reflects easing momentum. The RSI below 50 keeps momentum balanced and could limit follow-through.

GBP/USD struggles near four-week low vs. USD, below 1.3500 amid BoE rate cut bets

The GBP/USD pair is seen consolidating its weekly losses registered over the past three days and oscillating in a narrow range near a four-week trough, touched during the Asians session on Thursday. Spot prices currently trade just below the 1.3500 psychological mark and seem vulnerable to slide further.

Gold consolidates below $5,000 amid geopolitical risk, hawkish FOMC Minutes

Gold extends its sideways consolidative price move through the Asian session on Thursday and remains below the $5,000 psychological mark as traders seem hesitant amid mixed cues. The US Dollar preserves its strong gains to over a one-week high in the wake of somewhat hawkish Minutes of the US Federal Reserve’s January monetary policy meeting.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments. The technical outlook suggests further gains if INJ breaks above key resistance.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.