- The AUD/USD pair recovered above 0.6600.
- The Fed kept its rates unchanged at 5.50%, as expected.
- Chairman Powell advocated for a normalization of monetary policy “sometime” in 2024.
In Wednesday's session, AUD/USD trend recovered above 0.6600 from 0.6585 during Chairman Powell's press conference. The Federal Reserve (Fed) did not change its policy as expected, but the markets took the President's words as moderate, validating expectations of the easing cycle that will begin in May, which boosted the pair.
Jerome Powell noted that inflation data for the past six months was positive, but that the committee needed to see more data to be confident. He also added that it seems likely that the bank will achieve that confidence and that officials will see fit to eventually cut rates.
AUD/USD levels to watch
Indicators on the daily chart indicate that buyers are holding firm, but as long as they fail to conquer the 20-day SMA, the outlook will not be fully bullish in the immediate short term. On the downside, as long as it remains above the 200 and 100 day SMA, the general trend will remain positive
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
