The USD is little changed vs the 3 major currency pairs – the EURUSD, USDJPY and GBPUSD – ahead of the Fed rate decision later today with all three pairs within 0.09% of unchanged on the day.
IN the video above, I take a look at the technicals driving those three currency pairs and define the bias (bullish or bearish), the risks and the targets for each
Understand the roadmap of your trades and you will get better as a trader. The AUDUSD is the biggest mover with a decline of -0.47% (higher USD) Australia’s June CPI report was softer than expected, with headline inflation falling 0.1% on the month versus expectations for a 0.2% increase, while the annual inflation rate eased to 3.8% from 4.0%, also below forecasts. The RBA’s preferred trimmed mean CPI matched expectations at 0.3% m/m, but slowed from the prior month’s 0.4% increase, suggesting underlying inflation pressures are continuing to moderate.
Overall, the report is likely to reinforce expectations that the Reserve Bank of Australia can remain patient on further policy tightening, reducing the urgency for another rate hike in the near term. Technically the price fell below the swing area and trend line support (it held yesterday) and that gave sellers the go-ahead to push lower. The Federal Reserve will announce its policy decision today at 2:00 PM ET, followed by Chairman Kevin Warsh’s press conference at 2:30 PM ET.