AUD/USD: price action subdued on the 0.80 handle at two year highs

Currently, AUD/USD is trading at 0.8008, down 0.00% on the day, having posted a daily high at 0.8015 and low at 0.7992.

 Despite the Aussie CPI that disappointed o/n and now below the bottom of the RBA's target range, AUD/USD rallied on the FOMC outcome. with markets getting back to selling the dollar after there were no material changes to the statement with the Fed on hold still, the Aussie and commodities were well supported on dips post the rallies.  Analysts at Westpac suggested that if this morning’s surge can be sustained above 0.7970 (a big if), the next major upside target would be 0.8165 (May 2015 peak), "However the rally has been driven by the USD’s reaction to the FOMC, arguably excessive."

AUD/USD 1-3 month: 

Further out, the analysts at Westpac explained that much of AUD/USD's gains have been driven by broad US dollar weakness. "But there has also been a partial recovery in Australia's key commodity prices, after very steep declines in April and May. However, beyond multi-week gains, a firmly on hold RBA is likely to keep a lid on AUD/USD, easing to 0.74 by year-end," adde the analysts. 

AUD/USD levels

AUDUSD: Looking to buy dips towards 0.7900/50

"In the 4 hours chart, technical indicators have resumed their advances within overbought territory, and following a consolidative stage, while the price accelerated further above a bullish 20 SMA. Despite overbought intraday, the risk remains towards the upside, supported by continued strength in equities and stocks," noted Valeria Bednarik, chief analyst at FXStreet.