AUD/USD: risks to 0.74 handle on hawkish Fed?

Currently, AUD/USD is trading at 0.7557, down -0.03% on the day, having posted a daily high at 0.7569 and low at 0.7556.

AUD/USD is sliding on the five-minute charts but is consolidated ahead of the FOMC. Commodities performed well besides oil and support the Aussie that has been drifting from 0.7540 up to 0.7580 and resistance there. 

In respect to the Fed, should there be a hawkish hike scenario, the Aussie could come under overwhelming pressure with eyes set on the 0.74 handle. "The Fed’s assertive tightening bias plus US fiscal expansion should maintain upside pressure on US interest rates and the US dollar," explained analysts at Westpac, adding, "Against that coal and iron ore are likely to sustain a good portion of their dramatic rises, and economic data for Q4 and Q1 should improve, but these forces are subservient to the US dollar’s trend. Australia’s AAA rating will remain an issue into the May budget."

AUD/USD levels

Antipodean cross and rates outlook: headed 1.1050 April lows? - Westpac

Valeria Bednarik, chief analyst at FXStreet explained that in the 4 hours chart, the price is developing below a horizontal 200 EMA, but above a modestly bullish 20 SMA, whilst technical indicators have turned south within positive territory, after failing to achieve fresh March highs. "The downward potential is limited as long as the pair holds above the 0.7500, with a break below it required to confirm additional declines that can extend down to 0.7250 during the next few days, in the case that of an extremely hawkish FED."