AUDUSD is trading in a typical trading range during the Asian session.
During the Asian session on Wednesday, the AUDUSD pair struggles to gain any real movement. And sits below a two-week high, around the 0.6470-0.6475 region achieved the previous day. Spot prices are now hovering in the mid-0.6400s. Awaiting the result of the highly anticipated FOMC policy meeting before the next leg of a directional move.
AUDUSD Traders are waiting for the highly anticipated FOMC decision before making new directional bets.
Traders predict the Federal Reserve (Fed) to maintain interest rates unchanged. And so, The emphasis will be on future direction. Markets have priced in the probability of another 25 basis point hike before the end of the year. Owing to robust US economic data and still-sticky inflation. The outlook is still positive due to rising US Treasury bond rates, which appear to strengthen the US Dollar (USD) while acting as a headwind for the AUDUSD pair.
The downside appears cushioned, though, as investors seek new clues about the Fed’s future rate-hike path, which will aid in defining the buck’s near-term destiny. As a result, the attention will remain on the accompanying monetary policy statement and comments by Fed Chair Jerome Powell during the post-meeting news conference. In the meantime, traders choose to wait. the sidelines, resulting in a lackluster price movement in the AUDUSD pair.
Meanwhile, spot prices have moved little in response to the People’s Bank of China’s (PBoC) decision to hold benchmark lending rates constant at a monthly fix, as expected by the market.
Speculation that the RBA has stopped rising rates in order to keep any major appreciation at bay.
Meanwhile, concerns that the Reserve Bank of Australia (RBA) may have already completed its rate-hiking cycle should be treated with caution before positioning for an extension of the AUDUSD pair’s recent rebound from the 0.6355 region, or the YTD low reached earlier this month.
