• AUD/USD eased slightly on Wednesday as the U.S. dollar staged a modest recovery ahead of the Federal Reserve’s policy decision .
• The Federal Reserve is widely expected to announce a 25-basis-point rate cut later today to bolster the labor market, with investors focusing on Chair Jerome Powell’s remarks for clues on the trajectory of future policy easing.
• Greater attention will be on the Fed’s updated dot plot, which may indicate the potential number of additional cuts ahead, given weak labor data, persistent inflation, and mounting political pressure.
• Meanwhile, the upcoming Australian labor market report, due Thursday, is anticipated to show 20K–25K positions added and unemployment rate to remain steady at 4.2%, the data that could shape the RBA’s interest-rate path.
• Immediate resistance is located at 0.6707(Higher BB), any close above will push the pair towards 0.6755(23.6%fib)
• Support is seen at 0.6664(Sep 16th low) and break below could take the pair towards 0.6640(38.2%fib).
Recommendation: Good to buy around 0.6650 with stop loss of 0.6600 and target price of 0.6720
