fxs_header_sponsor_anchor

News

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 perceived the bank's statement tilted to the dovish side.
  • The FOMC will take policy lags into account for future hikes.

The US dollar reacted negatively immediately after the release of the Federal Reserve’s monetary policy decision. 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 been 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

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.