Why AUD/USD is holding steady near 0.7030

AUD/USD is little changed as traders weigh a surprise RBNZ hold and an approaching Fed decision.

AUD/USD trades near 0.7030, up +0.02% on the day, after the RBNZ held its OCR at 2.75% in a surprise 4-3 vote while flagging that tighter policy is still likely. With no major Australian data in the mix, the move looks largely technical, with price sitting between the 0.7007 support and 0.7040 resistance on the 4-hour chart. Traders may now focus on Wednesday's Fed decision for the next directional cue.

AUD/USD trades flat near 0.7030 after a tight RBNZ vote

The pair is little changed on the day, up +0.02%, as the RBNZ held its OCR at 2.75% in a surprise 4-3 vote.

The close vote and guidance that tighter policy may still be needed add a layer of uncertainty for AUD-linked trades.

Caution spreads from gold and oil into broader risk sentiment

Gold's slide below $4,000 and oil-driven Fed hike fears point to a cautious mood across markets.

With limited Australian data on the calendar, AUD/USD's price action looks largely technical for now.

Traders may watch the Fed decision and key AUD/USD levels

The Fed's interest rate decision on Wednesday could shape the dollar's next move, with knock-on effects for AUD/USD.

Nearby, the 0.7007 support and 0.7040 resistance mark the range traders may be watching most closely.

The chart right now

• Resistance: 0.7083
• Support: 0.6967

What to watch

• Fed Interest Rate Decision, Wed 28 Oct 18:00 UTC: a hawkish or dovish tone from the Fed could move the dollar broadly, which may ripple through AUD/USD.
• Whether AUD/USD holds above its 0.7007 nearest support: a break below could open the way toward the 0.6967 swing low, while holding could keep the range intact.
• Whether AUD/USD clears its 0.7040 nearest resistance: a move above this level could test the 0.7083 swing high if momentum builds.

Educational information only. Not investment advice. Trading involves risk of loss.