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  • Upbeat Aussie CPI-led intraday positive move fails near 0.6900 handle.
  • Stronger US ADP report exerts some downward pressure in the last hour.
  • Wednesday’s key focus will remain on the much-awaited FOMC decision.

 The AUD/USD pair held on to its mildly positive tone through the early North-American session, albeit has retreated around 15-20 pips from daily tops.  

The pair failed to capitalize on upbeat Aussie CPI-led goodish recovery gains and faced rejection near the 0.6900 handle. After a brief consolidation during the European session, the pair met with some supply following the release of stronger-than-expected US ADP report on private-sector employment.

Despite the positive data, the US Dollar struggled to attract any meaningful buying and remained well within its daily trading range amid increasing nervousness ahead of the highly anticipated FOMC monetary policy decision, due to be announced later during the US trading session.

Meanwhile, the latest leg of a downtick over the past hour or so could further be attributed to some repositioning trade ahead of the key event risk. Hence, it will be prudent to wait for a strong follow-through selling before positioning for an extension of the pair’s recent bearish slide from near three-month tops.

Technical level to watch