The AUD/USD pair is consolidating as markets await the outcome of the Fed's monetary policy meeting, which is expected to leave all policy settings unchanged. At the same time, according to released economic data, inflation in Australia ticked to 3.7% from 3.6%, which will push the RBA toward another rate hike. If the Fed decides to leave interest rates unchanged, the currency pair could receive support.
Technically, the AUD/USD pair is trading below resistance at 0.7045.
Technical picture and trading idea
The price is now above the middle line of the Bollinger Bands and above the 5? and 14?period SMAs. The RSI is above the 50 level and moving sideways. Stochastics are declining.
The instrument could rise to 0.6912 following the Fed decision. A buy entry could be at 0.7050. SL — 0.7006.
