- AUD / USD weakened as the dollar rallied across the board.
- Treasury yields higher ahead of Fed decision.
The AUD / USD closed on Tuesday with a small drop and on Wednesday, after several hours of trading in ranges, it broke lower and is testing the 0.7705 / 10 area, which is where the lows of the last three days are. .
Del RBA to the FOMC
Earlier in the day, the assistant governor of the Reserve Bank of Australia (RBA) Christopher Kent noted that Australia’s economic outlook, while improving, remains highly uncertain. Regarding the monetary policy outlook, Kent said the RBA will consider increasing asset purchases later in the year. Meanwhile, the Westpac Leading Index in February improved modestly to 0.02% from -0.1% but this data was largely ignored by market participants.
The focus is on what the US central bank will do. Fed will announce its decision, although no changes are expected. The focus will be on Powell’s press conference, if anything comes out in the statement regarding the recent spike in yields and FOMC members’ projections.
Just in the last hour, Treasury yields picked up pace, boosting the dollar. The 10-year rate reached 1.66%, the highest level since January 2020. In this context, the dollar index reached its maximums for the day at 91.99.
Technical levels
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