The Aussie Dollar is consolidating gains at multi-month highs, with downside attempts capped above previous lows at 0.6690. The Greenback remains sold with the US Dollar Index pushing against key support at 102.45, weighed by the unexpectedly dovish tone of Wednesday’s Fed monetary policy statement.
Fed Chair Powell showed optimism about the colling inflation and hinted at the end of the tightening cycle. Beyond that, the economic projections pointed out three 25 bp cuts in 2024, up from two at September’s meeting with 17 out of the 19 policymakers seeing lower rates next year. US Treasury yields dropped sharply, pushing the US Dollar lower across the board in a risk rally that boosted the Aussie to its highest levels since July. Earlier today, the Australian employment report showed mixed figures, with higher employment figures but with the unemployment rate increasing to its highest levels in more than one year, at 3.9%.
