AUDUSD is testing the 100-day moving average ahead of the FOMC minutes and jobs data. Yesterday, the Reserve Bank of Australia did not change the cash target rate, a mostly expected move after last week’s weak CPI.
Today, the FOMC minutes could be more important than the previous ones. At the last meeting, members increased the rate projections by two more hikes, but at the press conference, Powell was a bit more cryptic than usual. The minutes might shed some more light on how members see the economic outlook and rates. And of course, on Friday, the jobs data will shape the markets ahead of the CPI data.
AUDUSD has been ranging between Fibonacci 38.2% and 61.7% levels since February, but the waves have extended further since the start of June. If the 100-day moving average holds, AUDUSD might retreat to the 0.6550-0.65 support zone, depending on the minutes come out hawkish and the jobs data is strong enough. On the other hand, a breakout above could lead the prices to the 38.2% level of 0.6784 once more.
