AUD/USD on Thin Ice Ahead of Fed Meeting and CPI Report

The Australian dollar is facing a critical week ahead as investors look to the Federal Reserve meeting and Australia's quarterly CPI report for guidance. The AUD/USD has recovered over the past three weeks, but expectations of another RBA rate hike, renewed Middle East tensions, and the outlook for the US dollar could determine whether the rally continues or begins to fade.

The Federal Reserve meeting is likely to be the primary driver for AUD/USD this week, with any shift in the Fed's guidance set to influence the US dollar. Australia's quarterly CPI report will also play a crucial role in shaping expectations, as it has the potential to reshape market sentiment.