Free Trial

Aussie Prints New Cycle Lows Versus Greenback, Local Financial Markets Shut

AUD

Selling pressure hit AUD/USD Wednesday, with the rate extending losses after the FOMC's monetary policy review, which saw policymakers signal continued hawkish resolve. Australian financial markets are closed today.

  • The Fed's announcement and subsequent presser with Chair Powell took centre stage. The central bank raised rates by 75bp and forecast they could reach 4.4% this year and hit a cycle peak of 4.6% in 2023. The hawkish message from Powell helped cap a rebound in risk assets as he stressed that officials will keep tightening monetary conditions until they bring inflation under control.
  • Reminder that RBA's Bullock said earlier that she was "not sure" if domestic monetary policy settings were "necessarily in restrictive territory yet."
  • Risk sentiment soured post-Fed, with U.S. equity benchmarks coming under pressure. The initial strength in the commodity complex (as measured by the aggregate BCOM index) had already evaporated.
  • Spot AUD/USD trades at $0.6623, down 7 pips on the day. The rate is testing new cyclical lows printed yesterday at $0.6622. Should we get below there, bears would target the $0.6600 figure. Bulls look for a rebound above Sep 20 high of $0.6747.

To read the full story

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.