AUD/USD confined in a range around 0.75 mark, awaits Fed decision

The AUD/USD pair continued with its struggle to build on to its momentum above 0.7500 psychological mark and seesawed between tepid gains and minor losses as investors anxiously await for FOMC rate-decision.

The pair remained on Wednesday has been confined within a narrow trading band for the second straight session as investors opted to remain on sidelines ahead of the much awaited Fed rate-hike announcement, later during NY trading session. Although, today's possible outcome of a 25 bps hike in the Federal-funds rate is fully priced-in, market participants remain keen to know the Fed's future rate-hike path and hence, seemed reluctant to carry big bets going on to the big event. The prevalent cautious sentiment around equity markets is also indicative of the pre-Fed nerves and has failed to provide any impetus for the major. 

Looking at the broader picture, the pair, in the past couple of weeks, has repeated failed to build on / sustain its move above 0.7500 important hurdle and has been trading below the very important 200-day SMA, which seems to be pointing towards resumption of the prior depreciating move once the important event is out of the way. However, a less hawkish Fed would weigh heavily on the US Dollar and possibly trigger a sharp short-covering rally for the major.

Later during NA session, US economic data that includes - monthly retail sales data and PPI print, would be looked upon for some short-term trading opportunities, albeit focus would remain on the Fed decision.

Technical levels to watch

On a sustained move above 0.7500 handle, the pair seems to immediately dart towards 200-day SMA resistance near 0.7530 and a follow through buying interest above 200-day SMA resistance has the potential to continue boosting the pair further towards 100-day SMA resistance near 0.7575-80 region.

On the downside, 0.7480-75 remains immediate support to defend, which if broken is likely to accelerate the slide towards 0.7450 intermediate support, en-route 0.7430-25 horizontal support and eventually towards testing 0.7400 round figure mark.

Key events:

If 2017 is looking as clear as mud for you, then don't miss the following key live events scheduled for 16th December at FXStreet:

The Four Horsemen watch 2017; The Traders’ Panel - click to register for free

What will 2017 bring to the Forex traders? FXStreet is organizing the ultimate live panel you must attend to understand and anticipate what the new year might hold. Three remarkable traders plus a FXStreet analyst that together are The Four Horsemen riding the Forex market throughout 2017.

What, When and Who? Be Ready for 2017; The Fundamental Panel - click to register for free

What will 2017 bring to the markets from a fundamental standpoint? We are entering a phase of unprecedented uncertainty on a global scale - There are conflicting outlooks making for the perfect environment for a real battle between the bulls and bears. There are arguments for reflation vs a backdrop of deflation, there are bubbles that are about to pop and we could be on the brink of a banking crises - then throw in a bit of European and American politics. FXStreet would like to invite you to a superb panel of experts to help you understand the fundamental foundations to trade upon in the Forex market throughout 2017.