- AUD / USD continues to trade in positive territory near 0.7250.
- The major Wall Street indices are still on track to open higher.
- The FOMC will announce policy decisions and publish the Economic Forecast Summary.
After starting the week on the back foot and posting losses on Monday and Tuesday, the pair AUD/USD managed to rebound during the Asian session on Wednesday.
The People’s Bank of China (PBoC) decision to inject short-term cash boosted risk sentiment and the AUD took advantage of improved market sentiment. At time of writing, the pair was consolidating its daily gains at 0.7250, where it was up 0.2% on the day.
DXY moves sideways before the FOMC
On the other hand, the dollar remains relatively quiet ahead of the US Federal Reserve’s policy announcements. Currently, the US dollar index (DXY) is practically unchanged on the day at 90.23.
The Fed is expected to keep its policy rate unchanged. However, investors will look for changes to the policy statement and the updated Projections Summary that could indicate when to phase out assets.
More importantly, market participants will closely follow FOMC President Jerome Powell’s press conference. A subdued tone is likely to weigh on the dollar, while an aggressive political outlook despite concerns about a global economic slowdown could trigger a DXY rally.
Meanwhile, the major Wall Street indices are still on track to open decisively higher, suggesting that the USD could struggle to gain strength in the first US session.
Technical levels
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