AUDUSD Rallies Following Fed

Aussie was one of the better performers in the G10 following the “as long as appropriate” Fed who does not see the next move in rates as up though. This latter view drove US yields lower. AUDUSD rose 0.8% on Wednesday to 0.6523 and has started today stronger at 0.6529. It reached a high of 0.6540 on the initial reaction to the Fed but then eased back. The USD index is down 0.2%.

• AUDUSD is still some way from initial resistance at 0.6587, April 29 high, but clearance of this would be bullish. The bear trigger is at 0.6363 and a definite break below would see a resumption of this year’s downtrend.
• AUDJPY reached a high of 102.75 before diving to 99.94 as the Japanese authorities are assumed to have intervened to support the yen. The pair is currently down 0.9% to 101.26.
• AUDNZD traded in a narrow range and is up 0.1% to 1.1005. AUDEUR is 0.4% higher at 0.6093 and AUDGBP +0.5% to 0.5209.
• Equities were weaker with both the S&P and FTSE down 0.3%. Oil prices slumped with Brent down 3.4% to $83.44/bbl. Copper is 0.1% higher and iron ore around $116/t.
• Today March trade and building approval data are released.