29 Apr 2015
AUD/USD trims gains after Fed meeting
FXStreet (Córdoba) - AUD/USD erased most of the day’s gains following the release of the Fed statement after the 2-day FOMC meeting. The pair retreated from 3-month highs and dropped to 0.8005. From there rebounded and it was trading around 0.8030/35, slightly higher for the day.
In the statement, the FOMC noted that the economy slowed its pace in recent months due to ‘transitory factors’, but mentioned that job creation continued at a moderate pace and the jobless rate remained steady. Officials expected inflation to remain below the 2% target, but gathering traction over the medium term.
After the report, expectations about when the Fed would raise rates were not clear. “Markets, which were pricing in a September rate hike, may start to hedge their bets between September and June, which in the near term should lift yields at the front end of the Treasury yield curve and provide some support to the USD”, said Rob Carnell from ING.
AUD/USD still headed toward highest close since January
Despite the retreated the pair is about to post the strongest close in three months. The aussie is the best performer among commodity currencies on Wednesday and also over the week.
In the statement, the FOMC noted that the economy slowed its pace in recent months due to ‘transitory factors’, but mentioned that job creation continued at a moderate pace and the jobless rate remained steady. Officials expected inflation to remain below the 2% target, but gathering traction over the medium term.
After the report, expectations about when the Fed would raise rates were not clear. “Markets, which were pricing in a September rate hike, may start to hedge their bets between September and June, which in the near term should lift yields at the front end of the Treasury yield curve and provide some support to the USD”, said Rob Carnell from ING.
AUD/USD still headed toward highest close since January
Despite the retreated the pair is about to post the strongest close in three months. The aussie is the best performer among commodity currencies on Wednesday and also over the week.