Australia CPI, US FOMC await - A quiet session for the AUDUSD overnight despite a plethora of US data releases with the pair trading in a relatively-narrow...

Australia CPI, US FOMC await - A quiet session for the AUDUSD overnight despite a plethora of US data releases with the pair trading in a relatively-narrow band of .7915 to .7974 throughout. Today all attention will be on two things, the domestic CPI release at 11.30am along with the upcoming FOMC policy decision in the early hours of tomorrow morning. While it's clear the pair remains in bear trend, something that will see it remain under pressure for the moment, with so much good news priced into the USD and so much bad news priced into the AUD, it will have to take a significant undershoot on the core CPI figure to see further selling ensue. On the contrary, should the data meet-or-exceed expectations, watch for a sharp move to the upside as reduced rate cut expectations, along with profit-taking before the FOMC tomorrow morning, work in tandem to squeeze the Aussie higher. (VIEW LINK)