“¢ A modest USD retracement helps offset weaker NAB data and regain traction.
“¢ Softer copper prices fail to assist building on intraday up-move.
“¢ Traders now eye US CPI print for some fresh impetus ahead Wednesday’s FOMC decision.
The AUD/USD pair managed to rebound over 30-pips from Asian session lows and is currently placed comfortably above the 0.7600 handle.
The early US Dollar gains, led by positive headlines emerging from the US-North Korea summit, quickly fizzled out and turned out to be one of the key factors that helped the pair to turn higher for the second consecutive session.
Against the backdrop of today’s weak NAB Business Confidence index, a softer tone around commodity space, especially copper, did little to provide any additional boost to the commodity-linked Australian Dollar and failed to assist the pair to build on its intraday up-move.
Meanwhile, a subdued action around the US Treasury bond yields now seems to suggest that investors look forward to the latest FOMC monetary policy update before positioning for any near-term direction.
Heading into the key event risk, today’s release of US consumer inflation figures might provide some meaningful trading opportunities later during the early North-American session.
Traders might also take cues from the RBA Governor Philip Lowe’s scheduled speech during the Asian session on Wednesday but the key focus would remain on the highly anticipated FOMC decision.
Technical levels to watch
Any subsequent up-move is likely to confront resistance near the 0.7640-45 area and is closely followed by 100-day SMA barrier near the 0.7665 region. On the flip side, 0.7580 region might continue to protect the immediate downside, which if broken could accelerate the fall towards 0.7540-35 intermediate support en-route the key 0.7500 psychological mark.
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