AUD/USD retreats from multi-week tops, still comfortably above 0.6500 mark
- AUD/USD stalled its positive move near mid-0.6500s, ahead of 100-day SMA hurdle.
- The pullback was led by some repositioning trade ahead of the key data/event risks.
- The US Q1 GDP, FOMC policy decision might help determine the near-term trajectory.
The AUD/USD pair quickly retreated around 30-35 pips from seven-week tops, albeit has managed to hold with modest daily gains comfortably above the key 0.6500 psychological mark.
The US dollar remained under some heavy selling pressure on Wednesday. This coupled with the upbeat market mood provided an additional boost to perceived riskier currencies, including the aussie, and assisted the pair to continue gaining positive traction for the sixth consecutive session.
The positive momentum, however, stalled ahead of the 100-day SMA resistance and the pair started retreating from the 0.6545-50 region. The pullback lacked any obvious catalyst and could be solely attributed to some repositioning trade ahead of Wednesday's key data/event risks.
The US economic docket highlights the advance Q1 GDP report, which is expected to show that the economy contracted by 4.0% annualize pace in the three months to March. This will be followed by the FOMC policy decision and the Fed Chair Jerome Powell's post-meeting press conference.
Market participants will closely look for clues about the Fed's future policy path. This, in turn, will play a key role in driving the near-term sentiment surrounding the greenback and help determine the pair's next leg of a directional move.
Technical levels to watch