AUD/USD eyes top of the triangle at 0.7716 ahead of FOMC

Currently, AUD/USD is trading at 0.7620, up 1.09% on the day, having posted a daily high at 0.7637 and low at 0.7533.

US: Weak inflation and growth casts doubt on Fed hiking path - ING

AUD/USD rallied hard today ahead of the FOMC as markets price in the concerns over the US economy and dollar. Today's consumer inflation number for May came in at -0.1% vs 0% expected and below April's 0.2%. CPI fell to 1.9% from 2.2% year on year. DXY is down -0.54% having made a low of 96.32 from a high of 97.11 and AUD is 340 pips higher for the month so far.

US: Consumer Price Index for all urban consumers decreased 0.1% in May

This is a big move in the greenback ahead of the FOMC today that could potentially seal the dollar's fate depending on the outcome. Markets are expecting a dovish hike and that sentiment is weighing on the greenback already. We also have Australia's jobs data today and analysts at Westpac are expecting a statistical correction in May before employment accelerates through Q3. 

AUD/USD levels

AUD/USD has made a strong advancement his month and it is headed towards the top of the triangle at 0.7716. "Longer term outlook is neutral in the converging range: It is sidelined within the 0.7328-.7716 limits," argued analysts at Commerzbank, adding, " target base of the triangle. Long-term trend (1-3 months): It is side-lined in a converging range between 0.7315 and 0.7720. Our bias is negative. Failure will target 0.7161 Dec 2016 low then 0.7013 the 2001 to 2017 support line and eventually the 0.6828 January 2016 low."

FOMC coming up

FOMC Preview: 13 major banks expectation from June meeting

We are closing into the FOMC’s June policy meet decision and as the clocks tick closer to the decision timing, following are the expectations as forecasted by the economists and researchers of 13 major banks along with some thoughts on the future course of Fed’s action.