AUD/USD jumps back to test 15-month tops near 0.7180, Fed in focus

• AUD/USD picks up bids as US dollar resumes recent declines.
• Mixed Australian quarterly CPIs failed to deter the aussie bulls.
• All eyes on the Fed decision amid rising coronavirus 2.0 fears.

AUD/USD attempts a run to test the 15-month tops at 0.7183 for the third straight session on Wednesday, powered by the renewed selling seen in the US dollar across the board.

The aussie rebounds from daily lows of 0.7149 reached briefly after the Australian Q2 Trimmed Mean CPI data missed expectations. The data came in at -0.1% QoQ vs. +0.1% expectations. Meanwhile, the report that Queensland is declaring all of Greater Sydney a COVID-19 hotspot effective 1am on Saturday, also weighed down on the local currency.

Although, the bulls quickly regained control, as the greenback wallowed near two-year lows. The US currency remains battered across its main competitors, in light of the dwindling US economic recovery amid the coronavirus resurgence and dovish Fed expectations.

The FOMC concludes its two-day monetary policy meeting on Wednesday and could hint at a more dovish stance amid faltering economic growth prospects. This underscored the dollar break down, as markets fret that a dovish Fed could push the US real rates deeper into the negative territory. The deterioration in the US consumer confidence also keeps the dollar pressured.

Ahead of the Fed event, the focus remains on the risk trends and US Pending Homes Sales for fresh trading incentives. Gold price-action will be also closely followed by the resource-linked aussie.

AUD/USD technical levels