History has been made in the US: rates are rising for the first time in nearly a decade. Choppy markets resulted in an initial strengthening of the USD, followed by a weakening and then a re-strengthening.
For AUD/USD, this meant yet another rejection at 0.7280 which worked perfectly well once again. The technical line survived a highly important event in low liquidity conditions.
The decision was not too dovish: the dot plot showed 4 rate hikes next year and the sweeteners were more or less as expected. Janet Yellen made clear that rate rises will be gradual and data dependent.
For AUD/USD, weak support is at 0.7220, followed by stronger support at 0.7150. Resistance awaits at 0.7360, but 0.7280 certainly looks tough.
What’s next? We’ll see another reaction in the Tokyo session and then in Europe. No important events are scheduled for Australia, so it’s all about the further reaction to the Fed.
Historic Fed Decision – All the Updates
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