AUD/USD hovers below 0.7200 with Fed in focus

FXStreet (Córdoba) - The Australian dollar consolidates below the 0.7200 level and near yesterday’s lows versus the greenback in a quiet day as investors prepare for the Federal Reserve policy decision to be announced at 19:00 GMT.

AUD/USD has traded in a narrow range between 0.7178 and 0.7215 unable to set a short-term direction as investors remain sidelined. At time of writing, the pair is trading just above the 100-day SMA at 0.7192, virtually unchanged on the day.

With more than 80% of the market expecting the lift-off, attention will be more on Fed’s language and what the central bank says about the future path of rates.

AUD/USD technical levels

In terms of technical levels, immediate supports are seen at 0.7159 (Dec 14 & 15, Nov 23 lows), 0.7102/00 (Nov 19 low/psychological level) and 0.7068 (Nov 18 low). On the other hand, next resistances could be faced at 0.7248 (10-day SMA), 0.7280/82 (Dec 11 & 15 highs) and 0.7334/40 (Dec 10 & 7 highs).

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