FundamentalOverviewThe USD sold off across theboard on Friday as Fed Chair Powell tilted more dovish by saying that “withpolicy in restrictive territory, the baseline outlook and the shifting balanceof risks may warrant adjusting our policy stance.”That saw traders firming upexpectations for a rate cut in September which now stands around 82%probability with a total of 54 bps of easing by year-end. Overall, it’s not therepricing in interest rates expectations that weighed on the greenback buthedges being unwound.Now, the focus turns to theUS NFP report next week which is going to be crucial and will influence greatlyinterest rates expectations. Strong data might take the probability for aSeptember cut towards a 50/50 chance but will certainly see a more hawkishrepricing further down the curve. Soft data, on the other hand, will likely seetraders increasing the dovish bets with a third cut by year-end being pricedin.On the AUD side, the RBAcut interest rates by 25 bps as widely expected at the last meeting but didn’toffer much in terms of forward guidance, although their focus switched moretowards the labour market. The latest employment report missed by a littlemargin on the headline number but overall the data was good. The market isseeing a 63% probability of no change at the next meeting and a total of 36 bpsof easing by year-end. AUDUSDTechnical Analysis – Daily TimeframeOn the daily chart, we cansee that AUDUSD has been trading right in the middle of the two key levelsdefined by the top trendline and the support zone around the 0.6350 level. There’s not muchwe can glean from this timeframe, so we need to zoom in to see some moredetails.AUDUSD TechnicalAnalysis – 4 hour TimeframeOn the 4 hour chart, we cansee that the price is now consolidating around a key zone in the 0.6485 area.This is going to act kind of like a barometer with the price staying above itbeing more bullish and below it being more bearish. The buyers therefore willwait for the price to break higher to pile in for a rally into new highs, whilethe sellers will keep on stepping in below the zone to target a drop back intothe 0.6418 low.AUDUSD TechnicalAnalysis – 1 hour TimeframeOn the 1 hour chart, we cansee more clearly the consolidation defined by the grey box. There’s not much wecan add here as a breakout on either side should lead to more sustained trends.The red lines define the average daily range for today. Upcoming CatalystsToday we have the US Consumer Confidencereport. Tomorrow, we get the Australian Monthly CPI data. On Thursday, we getthe latest US Jobless Claims figures. On Friday, we conclude the week with theUS PCE price index. This article was written by Giuseppe Dellamotta at investinglive.com.