- AUD / USD is declining for the second day in a row.
- The US Dollar Index remains relatively quiet around 92.50 on Wednesday.
- The FOMC will release its Monetary Policy Statement at 1800 GMT.
The pair AUD/USD It rose to a daily high of 0.7376 during Asian trading hours, but lost its traction in the European session. At time of writing, the pair lost 0.25% on the day at 0.7340.
Focus shifts to FOMC meeting
Hours earlier, data released by the Australian Bureau of Statistics showed that the Consumer Price Index (CPI) rose to 0.8% in the second quarter from 0.6%. This reading was slightly above the market expectation of 0.7%. Additionally, the Reserve Bank of Australia’s (RBA) trimmed average CPI rose to 1.6% annually in the second quarter and was in line with analysts’ estimates.
Although Australia’s inflation figures helped the AUD find some demand, the AUD / USD failed to preserve its bullish momentum ahead of the FOMC policy announcements.
Meanwhile, the US Dollar Index, which closed the first two days of the week in negative territory, remains above 92.50 on Wednesday, forcing AUD / USD to remain in bearish numbers.
In a preview of the FOMC’s monetary policy meeting in July, “the Fed stands ready to stand firm with its bond buying scheme and reject any imminent adjustments,” said FXStreet analyst Yohay Elam. “Lack of action by the Fed does not mean stability in the currency markets; printing more dollars for longer means a weaker dollar.”
Technical levels
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