Audusd sees slight drop as markets await us federal reserve decision

AUDUSD Analysis

Performance after Tuesday
Period	Pct	Chg	Momentum
Tuesday	-0.01%	-0.4 Pips
Week to-date	0.95%	60 Pips
March	2.91%	180.5 Pips

Upcoming key events (London Time)

Wed 06:00 PM USD Fed Interest Rate Decision (Federal Funds Rate)
Wed 06:00 PM USD FOMC Economic Projections
Wed 06:00 PM USD Interest Rate Projections
Thu 12:30 AM AUD Labour Force Monthly Employment Change

What happened lately

The economic landscape is currently awaiting significant announcements primarily from the United States. The Federal Reserve is scheduled to release its Interest Rate Decision alongside the Federal Funds Rate at 6:00 PM on Wednesday. These announcements are highly anticipated as they hold substantial implications for global financial markets. Concurrently, the Federal Open Market Committee (FOMC) will unveil its Economic Projections and Interest Rate Projections, providing financial markets with insights into the future direction of U.S. monetary policy. These events are critical as they can influence investor sentiment and, consequently, the movement of various currency pairs, including AUDUSD.

In Australia, attention will be directed towards the Labour Force Monthly Employment Change data, set to be released early on Thursday. This piece of data is highly impactful as it provides a snapshot of the employment situation in the country, which can sway the Reserve Bank of Australia’s monetary policy stance. A significant deviation from the expected figures could lead to notable market reactions.

Looking specifically at the AUDUSD currency pair, which dropped slightly by 0.01% to 0.63820 on Tuesday, the pair appears to be in consolidation mode. The imminent release of the U.S. Federal Reserve’s Interest Rate Decision and associated economic projections is likely to dominate sentiment. If the Fed signals a continuation or acceleration of rate hiking, it could bolster the U.S. dollar, applying downward pressure on AUDUSD. Conversely, a dovish outlook might provide some relief to the Australian dollar. Concurrently, the Australian Labour Force data could inject volatility into the pair. Strong employment figures could support the Australian dollar, offsetting potential U.S. dollar strength. Overall, the forex market participants will be closely monitoring these events for cues that may drive the AUDUSD in the short term.

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What can we expect from AUDUSD today?

AUDUSD on Tuesday dropped -0.01% to 0.63820. Price is above 9-Day EMA while Stochastic is rising.

Updated daily direction for AUDUSD looks mixed as the pair is likely to consolidate above 0.63788 (S1).

Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 0.63871 or trades above daily pivot 0.6383. Break above could target R1 at 0.63861. While to the downside, we are looking at 0.63788 (S1) and daily low of 0.63798 as support levels. AUDUSD need to break on either side to indicate a short-term bias. A close below 0.63798 would indicate selling pressure.

For the week to-date, take note that AUDUSD is bullish as the pair continued to trade higher and is up by 0.95% over the past few days.

Key levels to watch out:

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