AUD/USD little changed as markets digest Fed interest rate decision
- The Australian Dollar holds close to a three-year high against the US Dollar, broadly unfazed by the Fed decision to keep rates unchanged.
- Fed Governors Stephen Miran and Christopher Waller dissent in favour of a 25 basis points interest-rate cut.
- The US central bank acknowledges the economy is solid, but continues to warn about "somewhat elevated" inflation.
The Australian Dollar (AUD) trades slightly lower against the US Dollar (USD) on Wednesday, with AUD/USD stuck in a narrow intraday range as traders show a muted reaction to the Federal Reserve’s (Fed) monetary policy announcement. At the time of writing, the pair is trading around 0.6995, holding near its highest levels in nearly three years.
The Fed kept its benchmark interest rate unchanged at 3.50%-3.75% range, in line with market expectations. The decision reflects a cautious approach as policymakers assess incoming economic data and evolving risks, following three consecutive 25-basis-point rate cuts last year
The decision passed with a 10-2 vote, with Governors Stephen Miran and Christopher Waller dissenting in favor of a 25-basis-point rate cut.
In its statement, the Fed said the economy continues to expand at a solid pace, but acknowledged that job gains have remained low and that the unemployment rate is showing signs of stabilization. Officials added that inflation remains somewhat elevated and warned that uncertainty around the outlook is still high.
The Committee said it will keep a close watch on incoming data and is prepared to adjust policy if risks emerge that could hinder progress toward its goals.
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.86% | 0.39% | 0.85% | 0.00% | 0.08% | 0.13% | 1.07% | |
| EUR | -0.86% | -0.48% | -0.04% | -0.86% | -0.79% | -0.73% | 0.21% | |
| GBP | -0.39% | 0.48% | 0.44% | -0.38% | -0.30% | -0.25% | 0.69% | |
| JPY | -0.85% | 0.04% | -0.44% | -0.84% | -0.76% | -0.69% | 0.22% | |
| CAD | -0.00% | 0.86% | 0.38% | 0.84% | 0.08% | 0.13% | 1.07% | |
| AUD | -0.08% | 0.79% | 0.30% | 0.76% | -0.08% | 0.05% | 0.99% | |
| NZD | -0.13% | 0.73% | 0.25% | 0.69% | -0.13% | -0.05% | 0.94% | |
| CHF | -1.07% | -0.21% | -0.69% | -0.22% | -1.07% | -0.99% | -0.94% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Author
Vishal Chaturvedi
FXStreet
I am a macro-focused research analyst with over four years of experience covering forex and commodities market. I enjoy breaking down complex economic trends and turning them into clear, actionable insights that help traders stay ahead of the curve.
