AUDUSD caught between Fed decision and Australian jobs data

AUDUSD faces a pivotal week as traders navigate between the imminent Federal Reserve policy decision and upcoming Australian employment figures, creating a two-way risk scenario for the currency pair. The Australian dollar's recent performance has been influenced by mixed domestic economic signals and broad USD movements reflected in the US Dollar Index futures. Market positioning suggests caution ahead of the Fed vote, with any dovish tilt potentially supporting AUDUSD through dollar weakness. Conversely, strong Australian jobs data could provide independent support for the Aussie dollar, particularly if employment growth exceeds expectations. The pair currently trades within a defined range, with technical levels suggesting consolidation ahead of these key events. Traders are advised to monitor both fundamental catalysts closely, as the combination of Fed policy guidance and Australian labor market strength will likely determine whether AUDUSD breaks its recent trading range and establishes a clearer directional trend.