Later today, Fed chatter will likely influence Fed rate cut expectations and US-Australian interest rate differentials.
Hawkish Fed policy commentary, supporting a delay to rate cuts, would widen the rate differential in favor of the US dollar, pushing AUD/USD toward the 200-day EMA. A break below the 200-day EMA may pave the way to the $0.64 level.
On the other hand, calls to cut interest rates by 50 basis points and hints of further policy easing would narrow the rate differential. A narrower rate differential could drive AUD/USD toward the 50-day EMA and the $0.65 resistance level. A sustained break above the $0.65 level may bring the July high of $0.6625 into play.
