US dollar strengthened yesterday against the Autralian currency in view of release of data on the changes of manufacturers price index in the USA. The release was better than expected: manufacturers price index in May grew by 2.4% YoY against the forecast of 2.3%; and manufacturers price index without food and energy increased by 2.1% YoY against the forecast of 2.0%. During the trading the price reached the level of 0.7528 after which correction started, and currently the pair is trading around the level of 0.7540.
Today, traders are waiting for FOMC's decision on interest rate. The level of the interest rate is expected to be increased by 25 basic points which may have a positive impact on USD rate. The comments of the regulator on the monetary policy will be of great importance for the formation of the market. FOMC will suggest its own assessment of the economy, in particular an inflation forecast and the terms of future interest rate increases. The data on retail sales and changes in consumer price index from the USA will be released today before the announcement of FOMC decision.
"Hawkish" tendencies of FOMC regarding the assessment of the economy and a forecast that provides for two more increases of the interest rate this year must have a positive impact on the rate of USD. "Dovish" comments of the regulator may support the pair AUD/USD.
Support levels: 0.7500, 0.7450, 0.7385, 0.7350, 0.7275.
Resistance levels: 0.7570, 0.7630, 0.7690, 0.7730.
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