A bit of a range trade is unfolding in AUD/USD with technical resistance and reported heavy offers at 1.0560/65. The sharp rebound from the US lows below 1.05 has been snuffed out. EUR/AUD sellers appear to have lost their appetite with that pair stalling in the 1.2330/45 range after falling a full cent since this time yesterday.
Neither side looks particularly strong ahead of the Fed. Expected indications about stronger growth are not a particularly strong positive driver for the pair but on the outside chance that the Fed remains downcast, I expect a bias to the downside as stocks turn lower.
In the event of a run to the upside, there are said to be stops up through 1.0580.
