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• The US Dollar Index retreats amid market jitters ahead of the Federal Reserve’s rate decision.
• US President Trump hints at possible changes to USMCA but no concrete trade deals yet, keeping markets cautious.
• The Australian Dollar gains against major currencies, including a 0.40% increase against the Greenback.

The AUD/USD pair remains resilient, despite a retreat from recent highs. The Australian Dollar (AUD) benefits from a weaker US Dollar (USD), as market participants focus on the Federal Reserve’s (Fed) anticipated policy meeting on Wednesday. Meanwhile, the trade rhetoric surrounding the Trump administration keeps traders on edge, especially with President Donald Trump discussing possible changes to the United States-Mexico-Canada Agreement (USMCA). However, no definitive updates have been provided regarding trade deals, leaving uncertainty in global markets. The Australian Dollar is also supported by its moderate recovery against the backdrop of China’s steady economic activity.

Daily digest market movers: US Dollar on the defensive ahead of Fed meeting
 

• Asian currencies see strong gains as markets assess the potential spillover effect of Taiwan Dollar strength.
• The US Dollar Index (DXY) is under pressure, falling to 99.30 as investors await the Federal Open Market Committee’s (FOMC) rate decision.
• The anticipated meeting could provide clues about potential rate cuts later in the year.
• Meanwhile, global currency markets are reacting to trade uncertainties, particularly in Asia, where the Taiwan Dollar's surge is affecting broader regional currencies. Investors are also eyeing any announcements related to the Trump administration's trade negotiations, though no details have emerged regarding finalized agreements.

Technical Analysis: AUD/USD remains bullish with supportive indicators
 

The AUD/USD pair is flashing a bullish signal, trading at 0.6500, up 0.40% on the day, and sitting near the top of its daily range of 0.6438 to 0.6498. The Relative Strength Index (RSI) stands at 63.48, signaling neutral momentum. The Moving Average Convergence Divergence (MACD) indicates a buy signal, and the Commodity Channel Index (CCI) reads 124.18, also suggesting a bullish bias. The Average Directional Index (ADX) at 21.07 is neutral, indicating a balanced market. Key moving averages reinforce the bullish outlook: the 20-day SMA (0.6372), the 100-day SMA (0.6286), and the 200-day SMA (0.6462) all suggest buying pressure. Additionally, the 10-day EMA (0.6422) and SMA (0.6418) further confirm the bullish sentiment. Support levels are identified at 0.6469, 0.6462, and 0.6422, providing a solid foundation for further gains.

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