- The Fed sees some progress, keeps policy unchanged; Powell gives a press conference.
- The US dollar rises and then falls; AUD / USD is trading at the same level it was before the release.
The AUD/USD It fell to 0.7316 following the release of the FOMC statement and then started to rebound, rising above the level it had before. The pair is hovering around 0.7350, falling during the day but far from the weekly lows.
The initial reaction in AUD / USD was completely reversed. So far, the US dollar is moving without a clear direction. US stocks are moving modestly higher and so are US yields.
Fed Stands But Sees Some Progress
The Federal Reserve, as expected, kept interest rates unchanged and also the asset purchase program. The FOMC mentioned that the labor market and inflation have moved towards the preconditions to take advantage of its support for the economy. “The economy has made progress toward targets since setting the taper bar in December and will continue to assess progress in upcoming meetings,” the Fed said.
The US central bank also announced that it has established two permanent repurchase agreement services that will function “as a back-up in the money markets to support the effective implementation of monetary policy and the smooth functioning of the market.”
The dollar rose immediately after the statement, but then gave up all the gain and even fell below previous levels. President Powell will hold a press conference.
Technical levels
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