- The Australian Dollar remains at four-month highs above 0.6700.
- The US dollar remains on the defensive after the Fed’s turn.
- Australian employment data has been mixed.
The Australian Dollar (AUD) consolidates gains at multi-month highs against the US Dollar (USD), with attempts at declines limited above daily lows near 0.6690.
The dollar remains sold, with the DXY Dollar Index pressing against the key support at 102.45, and weighed down by the unexpected dovish tone of the Fed’s monetary policy statement on Wednesday.
The Fed signals a pivot and causes the Dollar to sink
Fed Chair Jerome Powell sounded optimistic about cooling inflation and hinted at an end to the tightening cycle. In addition, economic projections pointed to three cuts of 25 basis points in 2024, compared to the two cuts planned at the September meeting, and 17 of the 19 monetary policy makers saw lower rates next year.
US Treasury yields fell sharply, driving the dollar lower overall, as a recovery in risk appetite pushed the Australian dollar to its highest levels since July.
Earlier today, the Australian employment report showed mixed figures, with employment numbers rising but the unemployment rate rising to its highest levels in over a year at 3.9%.
AUD/USD technical levels to watch
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.
