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FxWirePro: AUD/USD extends range trade for the 2nd straight session, caution ahead of FOMC meet

AUD/USD chart - Trading View AUD/USD extends range trade for the 2nd straight session, bias bearish. The pair is consolidating break below daily cloud with scope for further downside. June month Australian Building Permi…

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FxWirePro: AUD/USD extends range trade for the 2nd straight session, caution ahead of FOMC meet
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AUD/USD chart - Trading View 

AUD/USD extends range trade for the 2nd straight session, bias bearish.

The pair is consolidating break below daily cloud with scope for further downside.

June month Australian Building Permits disappointed, slipping more than market expectations.

Building Permits m/m printed at -1.2% against -1.0% expected and y/y came in at -25.6% against -24.3% expected.

AUD/USD largely muted to weak Building Permits data. Hovers around 0.69 handle with session high at 0.6908 and low at 0.6895.

Markets cautious ahead of FOMC meeting due this week. Focus also on two-day long US-China trade discussions in Beijing.

Positive incoming data form the U.S. point towards a hawkish cut on Wednesday by the Federal Reserve.

Technical indicators are also highly bearish. Momentum with the bears and volatility is rising.

AUD/USD could extend weakness to test major trendline support at 0.6795 on a hawkish Fed outcome. 

Support levels - 0.6827 (Lower BB), 0.6795 (Trendline support)

Resistance levels - 0.6926 (5-DMA), 0.6986 (20-DMA)

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex. 
 

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