AUD/USD meets key resistance at 0.7552 ahead of the FOMC main risk event today

Currently, AUD/USD is trading at 0.7543, up 0.10% on the day, having posted a daily high at 0.7546 and low at 0.7530.

AUD/USD has been able to rally vrs the dollar on the back of US yields below the 2.3% level, poor US data, concerns over the Fed tomorrow, and not least, the RBA that was slightly less dovish than the market had priced in. 

Gold approaches key levels ahead of FOMC, NFP

"The Central Bank left its rates unchanged at 1.5% as largely anticipated, but the statement showed an "upgrade" in the wording referring to the ongoing employment conditions...the document reaffirmed that the ongoing policy is consistent with "sustainable growth in the economy and achieving the inflation target over time,” with Governor Lowe still not ready to change his stance," explained Valeria Bednarik, chief analyst at FXStreet.

Meanwhile, on a longer term outlook, analysts at Westpac explained that the modestly weaker than expected Australian CPI outcome has added yet another factor capping the A$: "Softer commodity prices; a more protectionist stance from US President Trump, and higher US yields if the Fed raises rates in June as we expect. These leave the A$ with strong resistance at 0.76. We expect to see it heading towards 0.74 by year end."

AUD/USD levels

AUDUSD: Minor support will be seen around 0.0.7500/10

Valeria Bednarik, chief analyst at FXStreet explained that the rally was contained by the 200 EMA in the 4 hours chart, currently at 0.7552, of which indicates that the bullish potential remains well limited. "In the same chart, the price is well above a bullish 20 SMA, whilst technical indicators have resumed their advances within positive territory, diverging with the longer term perspective," she added.