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  • The Aussie is shuffling its feet near 0.7250 as broader markets await the US Fed.
  • It’s a quiet week on the docket for Aussie data, and market sentiment is in the driver’s seat.

The AUD/USD is continuing the week’s slump, cycling near the 0.7250 level as broader markets buckle down for the US Fed’s expected rate call due later on Wednesday.

The Aussie has been largely left out of the action this week, with little of note on the economic calendar for the Australian economy, and a Reserve Bank of Australia (RBA) that seems to be going nowhere fast.

Plenty of action is promised in the next  few days however, with the highly-anticipated US Fed expected to deliver another rate hike on Wednesday at 18:00 GMT, and markets are geared up for the world’s largest central bank showing of the third quarter.

Elsewhere, US-China trade continues to be a major sticking point for the Antipodeans, and investor confidence continues to get knocked back by rising trade war angst as times goes on, and swings in market fear can be expected to continue as little hope of a successful trade negotiation between the US and China currently exists.

AUD/USD levels to watch

A lack of upwards momentum could leave the Aussie-Dollar pairing exposed to a move back into the downside, according to FXStreet’s own Valeria Bednarik: “the pair hovers near daily highs heading into the Asian opening, with an increasingly bearish stance according to the 4 hours chart, as its currently resting above a bearish 200 SMA and below the 20 SMA, also below the 61.8% retracement of the latest daily decline. Technical indicators gain downward strength below their midlines, reaching fresh weekly lows, although the pair would need to extend its decline below the 50% retracement of the same decline, in the 0.7220 area, to be able to extend its negative momentum that will anyway will depend on how the market reads the US Fed’s meeting outcome. The pair could regain some upward poise on a firmer recovery above the 0.7260 level.”

Support levels: 0.7220 0.7190 0.7155  

Resistance levels: 0.7260 0.7300 0.7335