February 01, 2023 21:55 GMT
A$ Jumps On Fed Result And Disinflation Comments
The AUDUSD bounced after the Fed announced a 25bp hike and Chairman Powell commented that disinflation had begun. The AUDUSD had reached a low of 0.7036 during Wednesday and is now trading around 0.7135. Aussie was the best performer in the G10 outside of Europe boosted by positive equity sentiment. The USD DXY index was down 0.9%.
- AUDUSD reached a high of 0.7145 which broke initial resistance of 0.7142, the January 26 high, but couldn’t sustain it. The uptrend in the pair remains in place though and the focus is now on 0.7172, a Fibonacci projection.
- Aussie is up against the yen in a move that started pre the Fed. It is now at 91.98. AUDNZD is trading sideways and is around 1.0975. Aussie is up against the pound to 0.5767 but flat against the euro at 0.6494.
- Equity markets were mixed with the S&P up 1.1%, the Eurostoxx +0.2% but the FTSE down 0.1%. The VIX fell post-Fed and is at 17.9%. WTI oil prices fell 2.8% to $76.68/bbl as the US EIA reported another stock build but OPEC+ kept output unchanged. Gold prices jumped on the Fed result and are now at $1950.20. Copper prices were down 1% and iron ore is lower at $125.30/t.
- Today building approvals for December print and a 1% rise is expected after the 9% slump the previous month. The Quarterly NAB survey for Q4 is also released.