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

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.