The US dollar fell overnight, following the US Federal Reserves monetary policy decision to hike interest rates by 75bps. The hike, inline with expectations, takes the target range to 2.25-2.5%.
Of note from the event was Jerome Powell’s press conference, where he said that rates had reached neutrality. Powell said that it’s time to move to a meeting-by-meeting basis, and refrain from specific guidance, leaving space to be reactive to incoming data.
He also went to lengths to hose down fears of a recession when asked questions around such.
US Equities soared post the conference, also aided by the tailwind of earning seasons, and notably figures released by Microsoft and Google.
Ahead this evening, attention will now focus upon the advance read of the second quarter US GDP. Of note will be any indication of the occurrence of two consecutive quarters of negative growth, the technical definition of a recession.
AUD/USD Daily Chart
DXY (USD INDEX) Daily Chart
Major Global Markets
| Currencies | Level | Change (%) |
| AUD/USD | 0.6985 | -0.07 |
| AUD/JPY | 94.69 | -0.80 |
| AUD/CNH | 4.7116 | -0.03 |
| DXY | 106.325 | -0.13 |
| Rates | Yield (%) | Change |
| US 10 Year | 2.774 | -0.004 |
| Aus 10 year | 3.20 | -0.031 |
| Equities | Level | Change (%) |
| S&P 500 | 4024 | 2.62 |
| NASDAQ | 12032 | 4.06 |
| ASX 200 | 6861 | 0.56 |
| Commodities | Level | Change (%) |
| Iron Ore | 110.30 | 3.9 |
| Gold | 1717.33 | -0.00 |
| Brent Crude oil | 120.01 | 0.24 |