AUD/USD falls to fresh lows as USD gains momentum
- AUD/USD accelerates the decline after Fed, approaches 0.8000
- Fed says they expect economic conditions to evolve in a manner that will warrant further rate hikes
The dollar is gathering some momentum in the aftermath of FOMC statement, following a shy knee-jerk reaction.
After a few minutes of hesitation, AUD/USD came under renewed pressure and broke below yesterday’s low to hit its lowest level in 5 days at 0.8035. The pair is on track to post its third daily loss in a row after hitting multi-year highs in the 0.8135 area last week.
Fed leaves rates unchanged
As expected the FOMC voted for keeping the target range for the federal funds rate at 1-1/4 to 1‑1/2 percent. The central bank expects inflation to move up this year and to stabilize around the 2% objective over the medium term. “The Committee expects that economic conditions will evolve in a manner that will warrant further gradual increases in the federal funds rate,” the statement reads.
AUD/USD technical levels
As for technical levels, next supports could be faced at 0.8004/00 (Jan 26 low/psychological level) and 0.7966 (20-day SMA). On the upside, resistances are seen at 0.8116 (intraday high), 0.8135 (32-month high, Jan 26) and 0.8162 (May 2015 high).