- The AUS/USD pair is facing a leading decline for the 2nd straight day.
- The Wednesday analysis of the US Dollar index is reported stable at 92.50 as per expectations.
- The FOMC will update its most awaiting Monetary Policy Statement at 1800 GMT.
The AUD/USD price has gained daily rise to 0.7376 within the active trading hours of Asia. However, it lost its traction in the European session. As a result, AUD/USD pair lost 0.25%, reaching 0.7340 on the day. The investors are awaiting the FOMC meeting today.
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In the early hours of the day, data was published by the Australian Bureau of Statistics. It presented that the Consumer Public Index CPI has increased by 0.8% from 0.6% in the second quarter of the day. As the market was expecting a rise up to 0.7%, the figures came above expectations. Further, the trimmed-mean CPI in the Reserve Bank of Australia (RBA) achieved a significant rise of 1.6% per year in the second quarter that fulfil the market’s expectations.
The AUD/USD falls back while preserving its bullish momentum because Australian inflation figures support the pair in finding some demand before the FOMCs policy update.
In the initial 2 days of the week, the US Dollar index closed in the negative territory. In the meantime, the US Dollar Index is holding near 92.50 on Wednesday. As a result, it restricted the AUD/USD in the red zone.
As reported in the FOMC ‘s July policy meeting, the bond purchasing program of the Fed allows it to hold firm while pushing back any imminent tightening. However, the lack of action by the Fed doesn’t mean stability in the financial markets while maximum printing of Dollars refers to the weaker greenback.
AUD/USD price technical forecast: Where will bears stop?
The AUD/USD price maintains a bearish outlook amid today’s fall under 0.7350. The pair is well below the 20-period SMA on the 4-hour chart. Moreover, the 50-period and 20-period SMAs are pointing south which means more losses to come. The volume is constantly increasing with the fall of prices. We have a swing low of July 21 at 0.7290 which may provide interim support to the pair.
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Saqib Iqbal
