AUD/USD struggles near session lows, just above mid-0.6800s ahead of the Fed
- Bulls fail to capitalize on the latest US-China trade optimism.
- The USD remained on the defensive amid Fed rate cut hopes.
- The focus remains on the latest FOMC monetary policy update.
The AUD/USD pair dropped to fresh session lows, around the 0.6855 region in the last hour, and eroded a major part of the previous session's goodish bounce from multi-month lows.
Despite the latest positive trade-related developments, the China-proxy Australian Dollar struggled to gain any meaningful traction on Wednesday, rather met with some fresh supply and traded with a negative bias for the fifth session in the previous six.
It is worth mentioning that the US President Donald Trump and his Chinese counterpart Xi-Jinping agreed to meet on the sidelines of G20 summit next week, raising hopes for a possible resolution to the prolonged US-China trade disputes.
On the other hand, the US Dollar failed to attract any buying amid expectations that the Fed will lay the background for an eventual rate cut move by the end of this year and shrugged off a strong follow-through pick in the US Treasury bond yields, albeit failed to impress the bulls.
Heading into the key event risk - the highly anticipated FOMC monetary policy update, some repositioning trade could also be one of the factors contributing to the pair's offered tone through the early North-American session on Wednesday.
Technical levels to watch
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