AUDUSD - Neutral Pre Powell Testimony

AUDUSD has consolidated below support at 0.786 as the US dollar has strengthened across the board. Additionally, the Australian dollar has weakened due the impact of covid as cases have risen resulting in Sydney extending it's recent lockdown. If Powell indicates in his testimony later today that the FED are likely to raise rates sooner than expected by the market this could lead to a sharp drop in the currency pair. The next support level is as it 0.71 which if breached could lead to prices challenging the psychological 0.7 level. Therefore at this stage we hold a neutral AUDUSD view as we await significant price action and major announcements to enable us to form a directional view.