AUDUSD: Consolidation At Yearly Highs Ahead of Fed

AUDUSD recovers some of yesterday’s losses as the pair retreated from yearly highs. AUDUSD rallied from the March lows as confidence has been restored by Australia’s success in stopping the spread of coronavirus and enhanced by the gradual reopening of the economy.

The consumer confidence surveys released earlier showed that consumer sentiment declined by 1.3% to 97 points. The Monthly consumer confidence, however, rises by 6.4% in June to 93.7, returning to pre-coronavirus outbreak levels, but still, the consumer confidence remains below the long-run average.

On the other side of the fx pairs equation in the USA the Consumer Price Index (CPI) came in at -0.1% below the market expectations of 0% in May, the yearly CPI came in at 0.1% below consensus of 0.2%. United States MBA Mortgage Applications came in at 9.3% on June 5 from previous -3.9%.

Traders await the main “dish” of the day, which is the Fed monetary policy decision which might provide fresh catalysts for the forex markets. The economic forecasts will be on the radar as analysts expect that the interest rates will stay unchanged around zero.

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AUDUSD Price Technical Analysis

AUDUSD managed to recover early losses and turn positive showing that the bulls are still in control of the pair. Yesterday’s losses halted eight consecutive sessions of gains as the bullish momentum accelerated above the 200-day moving average. A consolidation at yearly highs before the next step is a possible scenario ahead of the Fed decision later today.

On the upside, the first hurdle for AUDUSD pair stands at 0.7019 the daily top. Next resistance zone will be met at 0.7042 the yearly high from yesterday’s trading session. Next obstacle will be encountered at 0.7065 the high from July 22, 2019.  

On the other side, immediate support for AUDUSD stands at 0.6932 the daily low. Below 0.6932 the next support will be at 0.6899 the low from yesterday’s trading session. Next support zone would emerge at 0.6769 the low from June 2. 

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