The EUR/USD currency pair scored its third straight day of advances on Tuesday, as it returned to the vicinity of the 1.1370-area. The Euro is advancing, inching toward six-day highs. This increase departs from the prevailing trend of the US Dollar’s recent downward trend. Equities traders are expecting the Federal Open Market Committee (FOMC) meeting scheduled for Wednesday. This meeting has the potential to be a game changer for market movement.
Over the past handful of trading days the Greenback has been under strong selling pressure, which has aided the Euro’s rise. Rumors are swirling and market participants are eagerly anticipating announcements if any from the FOMC. As a consequence, the EUR/USD price prediction remains stuck in a range around 1.1300. Analysts suggest that the outcomes of the FOMC meeting could provide clarity on monetary policy, thereby affecting the Euro’s trajectory.
Generally speaking, there was a positive tone to the AUD/USD pair on Tuesday. It printed only a few pips short of the key resistance level at 0.6500. Looking over the most recent data, all signs point to positive momentum developing. Ongoing weakness from China’s PMI could weigh on China-Australia exports. The pair saw some immediate post announcement retracement moving back towards 0.6450. The bulls have not given up just yet on an attempt to breakthrough that significant technical barrier.
This week persistent tariff effervescence has contributed to the complexities of currency trading. Market participants are on high alert for any developments which could adversely affect the Australian Dollar, especially in regard to evolving international trade dynamics. The AUD/USD needs to clear the 0.6500 barrier to extend gains. Traders are already bracing themselves for this headwind as they assess possible market moves before they happen.
The markets continue to continue prepare for the upcoming FOMC meeting. All eyes are on Federal Reserve Chairman Jerome Powell as his comments have the potential to drive the EUR/USD and AUD/USD pairs. For one, the currency markets are in a precarious state of near-constant volatility. Traders need to be on their toes for any news that comes from this fateful meeting.