AUDUSD has been consolidating for the past few days after the pair broke important short-term support around the $0.6830 mark. Australian Bureau of Statistics is scheduled to release fresh CPI figures on Wednesday.
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Unlike other commodity currencies, AUD has been struggling to make significant gains against the USD today. It seems that markets will trade in tight ranges ahead of the event-packed Wednesday, when Australian CPI, US GDP and Fed policy meeting are due.
“There’s still an awful lot of discrepancy and uncertainty in the markets as to what the Fed will do next year,” said Jane Foley, senior FX strategist at Rabobank.
AUDUSD broke below the important short-term support of $0.6830 on Thursday and has been attempting to return above the horizontal resistance (previous support), without much success so far. Furthermore, the 100DMA comes at $0.6850.
On the downside, $0.6810 – horizontal line connecting previous highs and lows – is the first level of support for bulls.Download our latest quarterly market outlook for our longer-term trade ideas.
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