• The Fed left interest rates unchanged as
  expected at the last meeting with basically no change to the statement. The Dot
  Plot still showed three rate cuts for 2024 and the economic projections were
  upgraded with growth and inflation higher and the unemployment rate lower.
• Fed Chair Powell
  maintained a neutral stance as he said that it was premature to react to the
  recent inflation data given possible bumps on the way to their 2% target.
• The US CPI and
  the US PPI beat
  expectations for the second consecutive month.
• The US Jobless Claims beat
  expectations.
• The latest US Manufacturing
  PMI
  beat expectations while the Services PMI missed slightly. Both the measures
  remain in expansion though.
• The US Consumer
  Confidence missed expectations although the labour
  market details improved.
• The market expects the first rate cut in June.

AUD

• The
  RBA left interest rates unchanged as expected at the last meeting and
  finally dropped the tightening bias.
• The
  last Monthly CPI report came in line with
  expectations although the underlying inflation measure increased from the prior
  month.
• The
  latest labour market report missed expectations by a big
  margin.
• The
  wage price index surprised to the upside as wage
  growth in Australia remains strong.
• The
  latest Australian PMIs showed the Manufacturing PMI falling
  further into contraction while the Services PMI continue to increase and remain
  in expansion.
• The
  market expects the first rate cut in August.

AUDUSD Technical Analysis –
Daily Timeframe

On the daily chart, we can see that AUDUSD has
tested the key support zone
around the 0.65 level several times in the last couple of weeks, and yesterday
finally fell below it. The sellers should now have even more conviction for a
drop into the 0.6443 low and will likely increase the bearish bets. The buyers,
on the other hand, will want to see the price getting back above the key
support to invalidate the bearish setup and position for a rally into the
0.6623 resistance.

AUDUSD Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that we have the
red 21 moving average acting
as dynamic resistance and the black minor trendline defining
the current downtrend. If the price were to pull back into the trendline, we
can expect the sellers to lean onto it to position for a drop into the 0.6443
level with a better risk to reward setup. The buyers, on the other hand, will
want to see the price breaking higher to invalidate the bearish setup and
position for a rally into the 0.6623 resistance.

AUDUSD Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see more
closely the recent price action with the price yesterday breaking below the key
support and coming back to retest it. We will likely see some consolidation
here as we head into the US PCE report.

Upcoming Events

Today we conclude the week with the US PCE and Fed
Chair Powell.

This article was written by FL Contributors at www.forexlive.com.