Traders Brace for FOMC Monetary Policy Meeting


With the increase in market uncertainty ahead of the crucial Fed decision, the AUD/USD takes offers to recover its intraday low near 0.7040. The industrial group’s report on Chinese activity may strengthen the retreat actions. Given this, China’s Caixin Manufacturing PMI increased from 49.0 to 49.2 but declined below 49.5 market expectations. Additionally, the six straight months of readings below 50 strengthen the bearish sentiment.

As traders get ready for today’s crucial Federal Open Market Committee (FOMC) monetary policy meeting amid subsiding fears of inflation and lingering recession troubles, it should be noted that market sentiment deteriorates after positive data. The fact that Fed Chair Jerome Powell is willing to defend the recent aggressive rate hikes despite the recent inflation forecasts being negative adds intrigue to today’s Fed meeting. This might drive the USD and create short-term possibilities around the AUD/USD pair, coupled with the general risk sentiment.

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