Mind the Fed’s Rate Decision Amid Surging AUD/USD

WikiFX News (9 June) - AUD/USD breached above last week‘s high and continued to surge with accelerated pace yesterday (June 8th), the uprising momentum is expected to carry on during today’s Asian Session. But the Fed‘s latest interest rate decision announcement scheduled for this week can significantly affect the AUD/USD’s trend.

WikiFX thinks that the risk-related Aussie dollar will continue to rise against the safe haven greenback. Spot AUD/USD rate is above 0.7000 level currently, while the pairs fluctuation year to date has remain positive as the market experiences a V-shape recovery. Looking ahead, AUD/USD may break above the technical resistance level where it jittered during December 31st, 2019.

But suppose the market sentiment worsens and major safe-haven currencies see buying momentum, the USD may recover some of its recent losses, while spot AUD/USD is expected to give back previous gains and turn down-slope.

But on Thursday, June 11th at 2am(GMT+8), the Fed will release its latest interest rate decision, a major risk factor on AUD/USDs future trend.