AUDUSD pair struggled to generate traction and remained trapped in a range.

During the Asian session on Tuesday, the AUDUSD pair extended its sideways consolidative price move. And remained limited in a similar trading range established over the last week or so. Spot prices remain stable in the 0.6435-0.6430 range. After the release of the Reserve Bank of Australia (RBA) September monetary policy meeting minutes.

The minutes of the September RBA meeting fail to inspire traders or give any real motivation.

The Australian reserve bank considered hiking interest rates byThe justification for holding was stronger. Given new data did not dramatically change the economic picture. The minutes also indicated that the RBA is still prepared to tighten further inflation continues higher than forecast. In the absence of new hawkish signals. The minutes had little impact on the Australian dollar or the AUDUSD pair. Despite anticipation that the RBA’s rate-hiking cycle has already stopped.

The US Dollar (USD), on the other hand, is seen offering some support to the AUDUSD pair as it stays on the defensive below a six-month high reached last week. Traders appear to be hesitant to put strong directional bets and prefer to sit on the sidelines in anticipation ofKey central bank rate decisions this week, including the Federal Reserve (Fed). The result of the US central bank’s two-day policy meeting is expected to be announced on Wednesday, with interest rates remaining steady at 5.50%.

As AUDUSD traders migrate to the sidelines ahead of the FOMC, the subdued USD price action gives some support.

AUDUSD Investors, on the other hand, are persuaded that the Fed would maintain its hawkish approach and have priced in the prospect of another 25 basis point hike before the end of the year. Furthermore, the Fed should be able to maintain interest rates higher for longer due to the incoming solid US macro data and still-sticky inflation. As a result, the attention will stay on the accompanying monetary policy statement. Aside from that, Fed Chair Jerome Powell’s remarks will be studied for clues about the direction of future rate hikes.

This, In turn, this will have a significant impact on the near-term USD price dynamics. And offer a new directional push to the AUDUSD pair. Meanwhile, hawkish Fed forecasts promote higher US Treasury bond rates. And favor USD bulls, implying that the path of least resistance for spot prices is to the negative. This implies that any major appreciating rise may still be perceived as a selling opportunity and may fizzle out shortly.