AUD/USD: stuck around 0.80 the figure awaiting FOMC

Currently, AUD/USD is trading at 0.8009, down -0.02% on the day, having posted a daily high at 0.8014 and low at 0.8006 as we await the FOMC tonight. 

Forex today: traders didn't want to be too long on USD ahead of FOMC

AUD/USD maintained a bullish theme in the overnight session, following the positive sentiment from the RBA minutes and some late NY supply in the dollar that enabled a rally through the psychological 0.80 handle to 0.8019 tops. Metal prices were also a supporting factor, enabling the bulls to meet with the 0.80 once again. The 50 sma on the hourly sticks at 0.7992 was supportive on the dip from 0.8015 early highs, while the 200 sma for the same time frame came in at the resistance 0.8015. 

AUD/USD 1-3 month: 

"If the RBA remains firmly on hold, as we expect, and the US dollar rises on tighter Fed policy, then AUD/USD could fall to 0.76 by year end," argued analysts at Westpac. 

AUD/USD levels

Valeria Bednarik, chief analyst at FXStreet explained that with the upward potential limited, according to technical readings in the 4 hours chart, as the price is unable to advance beyond a marginally bearish 20 SMA, technical indicators are being rejected from their mid-lines. 

"The pair would need to extend its advance beyond 0.8030 to be able to regain some upward traction, with scope then to approach the 08100 level, but selling interest will be larger the closer the price gets to this last," Valeria added.