AUD/USD consolidating the upside ahead of BOJ, Fed

AUD/USD retreated slightly from four-day tops and now trades modestly flat above the mid-point of 0.75 handle, with the upside restricted as a calm has spread ahead of key central banks’ rate decision due later today.

AUD/USD making lower tops on daily charts, downside ahead?

Currently, the AUD/USD pair trades flat at 0.7555, retreating slightly from session lows struck at 0.7545 in the last hour. The AUD bulls took a breather from its recent upsurge, now prompting a phase of consolidation in the major, as markets turn cautious and move away from higher-yielding currencies ahead of the main risk events for today – the BOJ and Fed outcome, which are likely to trigger massive volatility across the financial markets.

Nothing of note for the major in the day ahead, in terms of economic data, and hence, focus will remain on the broader market sentiment and USD price-action.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7565 (Sept 20 high) above which gains could be extended to the next hurdle located at 0.7589 (50-DMA). On the flip side, the immediate support located at 0.7520/17 (10 & 100-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7497 (daily S3).