The AUDUSD pair is now aiming for the 0.65 handle after breaking through the trendline.
The Fed kept interest rates unchanged, as expected, and made no changes to its statement.
Fed Chair Powell reiterated that they are proceeding with caution because the full effects of policy tightening have yet to be felt.
The US Core PCE for last week was in line with expectations.
The labor market remains fairly resilient, but we are beginning to see some signs of weakness as Jobless Claims fell short of expectations again this week, while Continuing Claims are rapidly rising.
Consumer confidence in the United States fell for the third month in a row, despite exceeding expectations. AUDUSD
This week’s ISM Manufacturing PMI in the United States fell far short of expectations.
The market no longer expects the Fed to raise interest rates.
Australia
The RBA kept interest rates unchanged, as expected because the current level of interest rates is causing inflation to return to target.
Last week’s CPI report surprised to the upside, prompting the market to price in a higher likelihood of another RBA rate hike in November.
The RBA Governor Bullock downplayed the CPI data beat, prompting the market to reduce rate hike bets.
The labor market continues to deteriorate, as evidenced by the recent miss in employment change and losses in full-time employment.
The Australian Manufacturing PMI fell further into contraction, while the Services PMI also declined.
The market anticipates that the RBA will keep interest rates unchanged at its next meeting.
