As anticipated, the Federal Reserve chose to keep rates unchanged at 5.00%-5.25%, with the AUDUSD trading at 0.67940.

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• Fed left rates unchanged at 5.00%-5.25% as expected.

The pair currently trades last at 0.67940.

The previous day high was 0.6807 while the previous day low was 0.6738. The daily 38.2% Fib levels comes at 0.6781, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6764, expected to provide support.

The AUD/USD cleared part of its daily gains, retreating to 0.6800 after the Federal Reserve (Fed) decision to hold rates steady. Additionally, an upward revision of the terminal rate to 5.6% was confirmed, indicating the likelihood of two additional 25 basis points (bps) increases. In their statement, the Fed clarified that keeping rates unchanged during this meeting would enable the members of the Federal Open Market Committee to evaluate further information regarding its impact on monetary policy.

Following the statement, the 10-year US bond yield recovered to 3.80%. On the other hand, the US stock market weakened, as all three major indices are in negative territory. The S&P 500 index (SPX) is seeing a 0.6% slide, the Dow Jones Industrial Average (DJI) a 1.19% loss, and the Nasdaq Composite (NDX) a 0.58% decrease.

For the following sessions, investors’ assessment of the monetary policy statement, macro forecasts and Chair Powell’s comment will dictate the pace of the markets. That being said, the economic projections indicate a slower growth pace, a robust labour market and slower progress on inflation. Regarding the press conference, Powell focused on the need to pause following a consecutive 500 bps hike since last year to asses further information.

According to the daily chart, the AUD/USD holds a neutral to bearish outlook for the short term as the bulls seemed to have taken a step back. However, technical indicators remain positive, indicating that the market may be preparing for another leg up.

If AUD/USD manages to move higher, the next resistances to watch are at the daily high at 0.6838, followed by the 0.6850 area and the psychological mark at 0.6900. On the other hand, the 100-day Simple Moving Average (SMA) at 0.6730 level is key for AUD/USD to maintain its upside bias. If breached, the pair could see a steeper decline towards the 200-day SMA at 0.6690 and the 20-day SMA at 0.6630.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6793 at the time of writing. Pair opened at 0.6767 and is trading with a change of 0.38 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.6621, 50 SMA 0.6662, 100 SMA @ 0.6736 and 200 SMA @ 0.6691.

The previous day high was 0.6807 while the previous day low was 0.6738. The daily 38.2% Fib levels comes at 0.6781, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6764, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.6734, 0.6702, 0.6665
• Pivot resistance is noted at 0.6803, 0.684, 0.6872

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