AUD breaks out as Fed signal end-date for.....>

FOREX: AUD breaks out as Fed signal end-date for hiking cycle

-The Fed's decision to remove 'accommodative' from their policy statement was

met with USD sales as the FOMC signalled they were at (or very near) the neutral

rate - slightly sooner than some had expected. While moves against other G10 FX

was relatively contained, AUD/USD broke sharply higher, appearing to trip stops

on the way through both the 50-dma and the major down trendline seen in place

for much of the year. The AUD/USD rally topped out at $0.7315 at the time of

writing.

-While USD selling was the initial response, markets sold most rallies among the

majors as the yield curve corrected back toward pre-release levels.

-CAD was comfortably the poorest performer as the US/Mexico bilateral trade deal

comes closer to fruition. Reports suggested the US are to publish the details of

the revised NAFTA agreement on Friday. USD/CAD rallied through C$1.30 and is on

track to challenge the 50- and 100-dmas.

-Focus turns to Asia's interpretation of the Fed rate hike, regional German CPI

readings and the latest GDP revisions.