AUD/USD: consolidates below 0.7500 awaiting the main event in the FOMC

Currently, AUD/USD is trading at 0.7496, down -0.02% on the day, having posted a daily high at 0.7504 and low at 0.7488.

AUD/USD has consolidated below the 0.75 handle ahead of the FOMC later today in the US shift as the showdown event, possibly, for the rest of the year. The market is fully prices into a rate hike, so either way, we could see the greenback come off depending mostly on the dot plot and the Fed's take on a Trump victory and outlook for 2017.

Wall Street's bubble just keeps on going, Dow getting close to 20,000

Meanwhile, the risk appetite leading into the event is even, though the stock market in the US just keeps on going and the Dow finished at fresh record highs on the back of Trump's proposed policies such as corporate tax breaks and deregulation and fiscal spending.

US dollar index steady around 101.00 ahead of FOMC decision

Also, there is a shortage of dollars in the off shore market and with yields on the rise, this is a bullish combination and the DXY has broken technical levels to the upside that is technically bullish as well for the dollar for 2017. In respect of the Aussie, commodities could come under pressure on a strong dollar and the RBA may have to rethink its chilled out approach in respect to the weakness seen in Q3 GDP and the contraction while China's bubble remains a risk as well.

AUD/USD levels

Current price is 0.7497, with resistance ahead at 0.7498 (Weekly High), 0.7498 (Daily Open), 0.7504 (Daily High), 0.7506 (Weekly Classic R1) and 0.7522 (Daily Classic R1). Next support to the downside can be found at 0.7495 (Hourly 20 EMA), 0.7488 (Daily Low), 0.7477 (Daily Classic PP), 0.7476 (Hourly 100 SMA) and 0.7476 (Yesterday's Low).

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