- Federal Reserve leaves rates unchanged at 4.25%-4.50% as expected.
- Fed statement removes prior language on inflation progress, signaling a cautious approach.
- AUD/USD drops to 0.6220 as the US Dollar strengthens post-Fed decision.
The AUD/USD pair extended its decline on Wednesday, falling to 0.6220 following the Federal Reserve’s policy decision.
As widely anticipated, the Fed left interest rates unchanged at 4.25%-4.50%, but the statement carried a hawkish tone. Notably, policymakers removed prior language indicating that inflation had made progress toward the 2% target, signaling a more cautious outlook on future rate cuts. The US Dollar strengthened immediately after the announcement, pressuring the Aussie lower. All eyes are now on Jerome Powell’s presser.
Technical overview
The AUD/USD remains under selling pressure, with the pair struggling to regain momentum. The Relative Strength Index (RSI) hovers in negative territory, reflecting bearish sentiment. Meanwhile, the MACD histogram prints rising green bars, suggesting some divergence. Key support lies at 0.6200, with a break below exposing 0.6170. On the upside, resistance is seen at 0.6230 (20-day Simple Moving Average).
AUD/USD daily chart
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