AUD/USD Stuck at 0.7 as Fed Decision Looms

The AUD/USD currency pair has been trading in a tight range around the psychologically important 0.7000 level after opening the week with a modest bullish gap.

Despite some support from renewed optimism about a possible diplomatic solution to the US-Iran standoff and easing inflation concerns, investors appear reluctant to commit to strong directional positions ahead of this week's key FOMC meeting.

The technical picture remains mildly constructive, with AUD/USD holding above the 23.6% Fibonacci retracement at 0.6961 and the 200-day SMA near 0.6901.