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AUD/USD slips after softer Australian CPI, eyes FOMC decision

AUD/USD was down about 0.25% on the day and hovered just above the mid-0.6900s, with traders weighing a Fed policy decision later today.

Reported · Written up by our desk · Major Pairs

FXStreet said AUD/USD has drawn sellers for a third straight day, pushing the pair to an over two-week trough after softer Australian consumer inflation data. The outlet noted spot prices rebounded slightly from the Asian session low and were trading just above the mid-0.6900s, still down roughly 0.25% for the day. FXStreet added that the US dollar has been softer, with traders stepping aside ahead of the Federal Reserve policy decision due later today.

FXStreet also pointed to renewed US-Iran tensions as a factor that could revive inflation concerns, lifting expectations for at least one US rate hike in 2026. According to the analysis, that backdrop supports the USD and increases pressure on AUD/USD.

On the technical side, FXStreet highlighted repeated failures to gain acceptance above 0.7000 and a move below the 0.6965 to 0.6960 support area tied to a two-week range boundary and a Fibonacci retracement. It cited an RSI near 38, suggesting lingering downside pressure, and said traders may watch for follow-through below the daily swing low around 0.6935 before targeting further levels such as 0.6926, 0.6898, and 0.6863 around the FOMC decision.

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