- The AUD/USD is churning chart paper around 0.6375 as markets digest the Fed's rate hold.
- Fed holds rates steady at 5.25%, Powell says no decisions on future meetings.
- Next Up: Australian September Trade Balance, US NFP Friday.
The AUD/USD is frothing in the middle range for Wednesday after the US Federal Reserve (Fed) held their policy rates at 5.25-5.5%, and markets will be turning towards Friday's US Non-Farm Payrolls (NFP) print.
The Aussie (AUD) rebounded against the US Dollar (USD) for the first day of November's trading, lifting from an early low of 0.6318 to tap an intraday high of 0.6394 and is now trading in the middle near 0.6360.
Powell speech: We have not made any decisions on future meetings
The US Fed held rates steady as many market participants expected, but a notable lack of change in the Fed's rate statement is knocking back the market's early bets of one last rate hike for 2023 in December.
Fed Statement comparison: November vs September
Up next for the Antipodeans will be Australia's Trade Balance figures due early Thursday; investors are anticipating a slight reduction in the Aussie Trade Balance from 9.64B to 9.4B.
After that the broader market will be turning eyes towards Friday's US NFP release, which will be taking on additional weight now that the Fed has directed their forward guidance to being limited to near-term data.
Jobs growth is expected to decline but still remain positive for the US, and Friday's NFP is forecast to print at 180K for October compared to September's print of 336K.
AUD/USD Technical Outlook
The Aussie continues to run into technical resistance near the 0.6400 handle as the 50-day Simple Moving Average (SMA) acts as a ceiling on price action near 0.6390, and the pair is cycling tightly in the midrange around the 21-day Exponential Moving Average (EMA).
AUD/USD bids remain firmly trapped in bear country in the medium-term, and a downside continuation through the 0.6300 handle will see the pair etching in twelve-month lows below 0.6270.
AUD/USD Daily Chart
AUD/USD Technical levels
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD extends recovery beyond 1.0400 amid Wall Street's turnaround
EUR/USD extends its recovery beyond 1.0400, helped by the better performance of Wall Street and softer-than-anticipated United States PCE inflation. Profit-taking ahead of the winter holidays also takes its toll.
GBP/USD nears 1.2600 on renewed USD weakness
GBP/USD extends its rebound from multi-month lows and approaches 1.2600. The US Dollar stays on the back foot after softer-than-expected PCE inflation data, helping the pair edge higher. Nevertheless, GBP/USD remains on track to end the week in negative territory.
Gold rises above $2,620 as US yields edge lower
Gold extends its daily rebound and trades above $2,620 on Friday. The benchmark 10-year US Treasury bond yield declines toward 4.5% following the PCE inflation data for November, helping XAU/USD stretch higher in the American session.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.