AUD/USD Consolidates Near 0.7000 Ahead of FOMC Meeting
The AUD/USD pair has been consolidating near the 0.7000 psychological mark due to cautious trading ahead of the FOMC monetary policy meeting this week.
Renewed optimism over a potential diplomatic resolution to end the US-Iran conflict and a slump in crude oil prices have weakened the US Dollar, supporting the AUD/USD pair.
The Reserve Bank of Australia's expectations of another interest rate hike are also lending additional support to the pair.
From a technical perspective, the AUD/USD pair remains constructive near-term, with momentum readings backing a mildly bullish stance. However, traders may wait for sustained strength and acceptance above the 38.2% Fibonacci retracement level at 0.7019 before placing fresh bullish bets.
If the AUD/USD pair breaks above this level, it could open the way toward the 50% retracement at 0.7066, followed by the 61.8% Fibonacci level at 0.7113 and then 0.7180.