AUD/USD holds key support of 0.6500 ahead of Fed policy meeting

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AUD/USD holds key support of 0.6500 ahead of Fed policy meeting
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The AUD/USD pair faces selling pressure but continues to hold the psychological support of 0.6500 in Wednesday’s late European session ahead of the Federal Reserve’s (Fed) monetary policy decision, which will be announced at 18:00 GMT.

AUD/USD faces pressure amid cautious market sentiment ahead of Fed policy. Investors await the Fed’s dot plot and economic projections for fresh guidance. RBA Bullock delivers a neutral interest rate outlook. The AUD/USD pair faces selling pressure but continues to hold the psychological support of 0.6500 in Wednesday’s late European session ahead of the Federal Reserve’s monetary policy decision, which will be announced at 18:00 GMT.

The Fed is expected to avoid signalling any timeframe for rate cuts as inflation remains stubbornly higher than the 2% target. Consumer price inflation in February was hotter than expected due to higher food and gasoline prices. The rate cuts are appropriate only if the Fed finds inflation declining to 2% as certain. Apart from that, Fed’s dot plot and United States economic projections will be keenly watched.

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