AUD/USD spiked to session highs of $0.7315...>

AUSSIE: AUD/USD spiked to session highs of $0.7315 (in line with the August 30

high) on Wednesday, on the back of the initial release of the FOMC's statement

that accompanied its latest 25bp hike.

- The Fed's removal of "accommodative" initially pressured the USD, in spite of

the FOMC implementing the widely exp. 25bp hike. Chair Powell was quick to play

down the removal of "accommodative" from the statement, saying this does not

signal a change in pol. Powell reiterated pol is still accommodative & noted

that overall financial conditions remain accommodative. This pushed the cross

back to ~$0.7260, where the rate closed after an additional brief & limited blip

higher during the remainder of Powell's press conference.

- AUD/USD still deals around $0.7260, and remains locked in its downtrend, with

bulls still looking for a close above 50-DMA ($0.7296). Failure to hold above

$0.7200 would bring the YTD low ($0.7085) back into play.

- The AU docket is limited this week, so focus will likely fall on the broader

risk backdrop/USD theme ahead of next week's RBA MonPol decision, AU trade data

& retail sales. It is also worth noting that RBA's Heath will speak next week.