AUD/USD Rallies To Yearly Open Ahead Of FOMC Rate Decision

Looking forward, the absence of meaningful local data brings attention to the Federal Reserve monetary policy announcement and press conference on the 11th of June. With expectations that Chairman Jerome Powell and his committee will keep the cash rate steady at 0.25%, investor focus will turn to the forward guidance delivered by the US central bank.

Eco Calendar

USD WEIGHTED AVERAGE VS AUDUSD (DAILY PRICE CHART)

USD Weighted average vs AUDUSD

Source – Trading View

The US Dollar’s decline to three-month lows has seen the Relative Strength Index (RSI) slide into oversold territory for the first time this year. Collapsing through the 200-day moving average earlier in the month invigorated sellers, as they forced price back to a supportive zone extending from the 2014 low.

Price reaction at trend support suggests that the Greenback may be attempting to carve out the monthly low, as it remains contained within a bullish Falling Wedge chart pattern. RSI could provide an early indication of intent, with a push back above 30 possibly leading to USD clawing back lost ground against its Australian counterpart.

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