• AUD/USD hovered around two week high on Wednesday as investors cautiously awaited for likely interest rate cut from the U.S. Federal Reserve.
• Anticipation of a half-point rate reduction by the U.S. Fed later in the day stood at 65%, substantially higher than 34% a week ago, according to CME FedWatch Tool.
• The Fed's decision will significantly impact Australia's interest rate trajectory. Markets currently see little chance of a cut in the 4.35% cash rate at the Reserve Bank of Australia's meeting next Tuesday.
•The pair hit daily high at 0.6776 and was last trading at 0.6752 at (GMT 05:36).
• Immediate resistance is located at 0.6763 (23.6%fib), any close above will push the pair towards 0.6792 (Aug 27th high).
• Support is seen at 0.6694 (50%fib) and break below could take the pair towards 0.6660 (Sep 6th low)
Recommendation: Good to buy around 0.6740, with stop loss of 0.6690 and target price of 0.6820
