FxWirePro: AUD/USD catches breath in lead up to Fed decision, further topside likely

•  AUD/USD eased slightly on Tuesday  as markets were largely in wait-and-see mode  ahead Federal Reserve interest rate decision later this week.

• The U.S. Federal Reserve begins its two-day policy meeting on Tuesday, with an interest rate cut largely expected as political pressure from the White House on monetary policy intensifies.

• Markets have fully priced in a 25 bp cut, with a slim chance of 50 bp still on the table as Trump urges the Fed to opt for a bigger move.

• Markets will also focus closely on the Fed’s updated “dot plot” and Powell’s comments on how far and how fast rate cuts may go.

•At GMT 05:33, the Australian dollar was down  0.10% to 0.6664 against the Greenback

•  Immediate resistance is located at 0.6681(23.6%fib), any close above will push the pair towards 0.6693(Higher BB)

•  Support is seen at 0.6589(Sep 11th low) and break below could take the pair towards 0.6549(SMA20).

 Recommendation: Good to buy  around 0.6650 with stop loss of 0.6600 and target price of 0.6700