AUD/USD jumps to session highs at 0.6475 after the FOMC statement

  • The aussie hits session highs at 0.6475 after Fed’s decision.
  • The market has seen the bank’s statement tilted to the dovish side.
  • The FOMC will take the cumulative tightening into account for future hikes.

The US dollar reacted negatively immediately after the release of the Federal Reserve’s monetary policy meeting. The Aussie, which had been trading within a tight range above 0.6400,  has surged to session highs at 0.6470 so far.

Investors see a dovish tone in the Fed’s statement

As was widely expected, the bank has hiked the Federal Funds rate by 75 basis points, for the fourth consecutive time,  to the 3.75% – 4.00% range.

The bank’s statement, however, has seen tilted to the dovish side. The committee observes that in determining the pace of future rate hikes, they will consider “cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments.”

Beyond that, the bank has warned about recent indicators pointing to modest growth in spending and production.

Technical levels to watch

Articles You May Like

Oil prices dip as dollar strengthens, remain on track for weekly rise
Oil up 3% on OPEC+ output plans and price cap on Russian crude
USDJPY tracks toward 100 hour MA after failure on break of 200 hour MA earlier today.
Gold rate today: Yellow metal eases after a run-up; silver tops Rs 65,000 on MCX
Crude oil continues it downward tumble. High to low today, the price fell -6.9%.

Leave a Reply

Your email address will not be published. Required fields are marked *