AUD/USD consolidating below 0.7500, Fed statement to provide fresh impetus

The AUD/USD pair has managed to recover from session lows but remained well offered below 0.7500 handle and is now hovering around 100-day SMA region.

Wednesday’s release of quarterly Australian CPI data eased prospects of an immediate rate-cut by RBA at its meeting in August, but the market remained cautious ahead of the much awaited Fed monetary policy decision, later during US trading session.

Although the central bank is not expected to move on interest rates this time, but would be keen to gauge the timing of next Fed rate-hike move from the accompanying policy statement. 

Trade July 27 Federal Reserve interest rate decision - Live Coverage

Moreover, despite of a rise in inflation, market participants still expect RBA to go ahead and cut interest rates later during the year, which now seems to cap any swift recover for the pair.

Technical outlook

Omkar Godbole, Editor and Analyst at FXStreet, notes, "Pair’s break below 0.7500 after having failed at 10-DMA earlier today could trigger a fresh drop towards 0.7450 levels, which if breached would open doors for 50-DMA at 0.7416."

"On the higher side, only a daily closing above 0.7571 (61.8% of 0.7835-0.7145) would signal a fresh rally towards 0.77 handle."