• The minutes showed that some Federal Reserve officials wanted a 50 bps rate hike.
  • Policymakers’ worries are linked to a tight labor market and commented inflation risks are tilted upwards.
  • AUD/USD Price Analysis: Spiked towards 0.6830 before reversing its path to print a new weekly low of around 0.6801.

AUD/USD prolonged its losses during the Wednesday session and dropped nearby the day’s low of 0.6808 after the release of the Federal Open Market Committee (FOMC) minutes, which revealed that “few participants” favored a 50 bps rate hike. At the time of writing, the AUD/USD exchanges hands at 0.6826.

Summary of the FOMC’s minutes

The FOMC revealed in its minutes that some Federal Reserve policymakers wanted a more aggressive rate hike, with minutes citing that “a few participants favored raising rates by 50 bps.” Further, all the Fed board members agreed that more rate hikes are needed to achieve the Fed’s target and that balance sheet reduction would continue according to the plan.

Fed policymakers reiterated that inflation risks remain skewed to the upside, including China’s reopening and Russia’s invasion of Ukraine, reiterating that the labor market remains tight. Participants said the economic outlook is weighed on the downside, and some participants saw prospects of a recession in 2023.

AUD/USD Reaction to FOMC’s minutes

The AUD/USD 1-hour chart shows a spike towards 0.6832 before the AUD/USD reversed its course, breaching south of the S1 daily pivot point at 0.6825. It should be said that volatility has increased, and after reaching a low of 0.6808, as of late, the AUD/USD is tumbling sharply, eyeing a break below the 0.6700 mark.

AUD/USD 1-Hour chart

AUD/USD Key technical levels

AUD/USD

Overview
Today last price 0.6803
Today Daily Change -0.0051
Today Daily Change % -0.74
Today daily open 0.6854
 
Trends
Daily SMA20 0.698
Daily SMA50 0.6891
Daily SMA100 0.6715
Daily SMA200 0.6805
 
Levels
Previous Daily High 0.692
Previous Daily Low 0.6848
Previous Weekly High 0.703
Previous Weekly Low 0.6812
Previous Monthly High 0.7143
Previous Monthly Low 0.6688
Daily Fibonacci 38.2% 0.6875
Daily Fibonacci 61.8% 0.6892
Daily Pivot Point S1 0.6828
Daily Pivot Point S2 0.6802
Daily Pivot Point S3 0.6756
Daily Pivot Point R1 0.69
Daily Pivot Point R2 0.6946
Daily Pivot Point R3 0.6973

 

 

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