Australian Dollar Trims Losses After Fed Holds

The Aussie Dollar trimmed some of its earlier losses after the Federal Reserve kept rates steady, by a 9 to 3 vote, with three dissenters who supported a 25-basis-point rate hike. The AUD/USD trades at around 0.6950, down 0.32%. 

AUD/USD remains on the backfoot, despite Fed’s decision

The Fed noted that economic activity continues to grow steadily despite the high uncertainty stemming from the Middle East conflict. It highlighted that “Productivity growth and capital investment are robust. Job gains remain consistent with the workforce, and the unemployment rate has changed little.” 

The policy statement reaffirmed the Fed's dedication to maintaining price stability. Dissenting opinions came from Cleveland Fed Beth Hammack, Minneapolis Fed Neel Kashkari, and Dallas Fed Lorie Logan, who favored a 25-basis-point rate hike. 

Investors now await Fed Chair Kevin Warsh's press conference.

AUD/USD Hourly chart

AUD/USD hourly chart