• AUD/USD consolidated gains on Monday ahead of big central bank week as the U.S. Federal Reserve is set to resume its policy easing cycle.
• Event risk this week is dominated by rate decisions in the U.S., Japan, the U.K., Canada, and Norway, alongside a heavy data calendar in Europe and China.
•Markets widely anticipate the Fed will cut rates by 25 bps to 4.00%-4.25% on Wednesday to bolster the cooling labor market, while leaving a slim possibility for a deeper 50 bps reduction.
• Markets will closely watch the FOMC statement and Chair Jerome Powell’s press conference for forward guidance, with as many as three rate cuts expected this year.
•Key U.S. releases this week include retail sales, industrial production, housing starts, weekly jobless claims, and the Philadelphia Fed index.
• Immediate resistance is located at 0.6672(Higher BB), any close above will push the pair towards 0.6701(23.6%fib)
• Support is seen at 0.6589(Sep 11th low) and break below could take the pair towards 0.6550(38.2%fib).
Recommendation: Good to buy around 0.6630 with stop loss of 0.6450 and target price of 0.6700
