Later today, Fed guidance could influence bets on multiple Fed rate cuts and US-Australian interest rate differentials.
Hawkish Fed policy chatter, calling for a delay to rate cuts, would widen the rate differential in favor of the US dollar, pushing AUD/USD toward the 50-day EMA. A drop below the 50-day EMA may expose the 200-day EMA.
Conversely, support for a 50-basis point Fed rate cut in September would narrow the rate differential. A narrower rate differential could send AUD/USD toward the $0.6550 resistance level. A sustained move above the $0.6550 level may enable the bulls to target the July high of $0.6625.
