AUD/USD hits 1-week lows at 0.6350

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  • The aussie makes a U-turn from 0.9490 and falls to a one-week low at 0.9350.
  • Fed Powell takes a hawkish stance and drives the dollar higher.
  • The dollar suffered after the dovish FOMC statement.

The USD faltered after the outcome of the Federal Reserve meeting. The aussie rallied to session highs just below 0.6500 following a dovish monetary release before tumbling to 0.6350 following Powell’s release.

Powell sides with the hawks and the dollar bounces

The dollar took a drastic turn after the comments of the president of the Fed, Jerome Powell, in the publication of the entity. Powell struck a hawkish tone to reporters, countering the impact of the previously released statement, and sending the dollar higher.

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Jerome Powell refuted the idea that the bank might have tightened too much and reaffirmed the need to keep raising rates for policy to be tight enough.

Beyond that, he stated that economic data suggests that “we could reach higher levels than we anticipated at the September meeting,” which has curbed expectations of a moderate pivot in December.

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As for the next meeting, Powell assured that there will be a debate as no decision has been made yet and the time to slow down rates could be as early as December or at the February meeting.

Previously, the FOMC statement stated that the pace of future rate hikes will be decided taking into account “the cumulative adjustment of monetary policy aria the lags with which monetary policy affects economic activity and inflation, and economic and financial developments.

The bank met expectations and raised rates by 75 basis points for the fourth time in a row, leaving the fed funds rate in the range of 3.75% to 4.00%.

Technical levels to watch

AUD/USD

Overview
last price today 0.6376
daily change today -0.0019
Today’s daily variation in % -0.30
Daily opening today 0.6395
Trends
daily SMA20 0.635
daily SMA50 0.6565
daily SMA100 0.6742
daily SMA200 0.6982
levels
Previous daily high 0.6464
Previous Daily Low 0.6377
Previous Weekly High 0.6522
Previous Weekly Low 0.6272
Previous Monthly High 0.6548
Previous Monthly Low 0.617
Daily Fibonacci of 38.2% 0.6431
Daily Fibonacci of 61.8% 0.641
Daily Pivot Point S1 0.636
Daily Pivot Point S2 0.6325
Daily Pivot Point S3 0.6273
Daily Pivot Point R1 0.6447
Daily Pivot Point R2 0.6499
Daily Pivot Point R3 0.6534

Source: Fx Street

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