FxWirePro: AUD/USD Daily Outlook

Chart - Courtesy Trading View 

AUD/USD was trading 0.33% lower on the day at 0.6704 at around 09:15 GMT.

DXY strength ahead of FOMC meeting keeps downside pressure on the pair.

Further, downbeat monetary policy meeting minutes from the Reserve Bank of Australia (RBA) and People’s Bank of China’s (PBOC) inaction seem to weigh on the cross.

RBA Minutes released earlier on Tuesday showed that the policymakers are well prepared for further rate hikes to tame inflation. 

However, the statements like, “Interest rates have increased quite quickly and were getting closer to normal settings,” seem to drag prices lower.

The People’s Bank of China (PBOC) held one-year and five-year Loan Prime Rate (LPR) unchanged at 3.65% and 4.30% respectively.

The PBOC's decision poured cold water on the face of expectations of a rate cut and weigh on antipodean prices.

Major Support Levels: 

S1: 0.6645 (Lower BB)

S2: 0.66

Major Resistance Levels: 

R1: 0.6765 (200H MA)

R2: 0.6797 (21-EMA)

Summary: AUD/USD was trading with a bearish bias, scope for further downside. Test of fresh yearly lows likely.