AUD/USD Retreats Ahead of FOMC: Strategic Implications for FX Traders

The Australian Dollar (AUD/USD) has fallen to the 0.7120s from its earlier four-month high of 0.7200, driven by a strengthening US Dollar (USD) and anticipation of the Federal Reserve's (Fed) policy decision. Monetary policy divergence, with a potentially hawkish Fed contrasting a cautious RBA, is weighing on the AUD. Technicals suggest further downside unless key support holds. Traders should brace for high volatility post-Fed.