AUD/USD rebounds from one-week lows after Fed’s decision

• Fed sees some progress, keeps policy unchanged; Powell holds press conference.
• US dollar rises, then reverses; AUD/USD at the same level it had before the statement.

The AUD/USD tumbled to 0.7316 following the release of the FOMC statement and later started to recover, rising above the level it had before. The pair is hovering around 0.7350, down for the day but off weekly lows.

The initial reaction in AUD/USD was completely reversed. So far, the US dollar is moving without a clear direction. US stocks are moving modestly to the upside and also US yields.

Fed holds but sees some progress

The Federal Reserve as expected, kept interest rates unchanged and also the asset purchase program. The FOMC mentioned the labor market and inflation have made progress toward preconditions for tapping their support to the economy. "Economy has made progress toward goals since setting the bar for taper in December and will continue to assess progress in coming meetings", said the Fed.

The US central bank also announced that it established two standing repurchase-agreement facilities that will work “as backstops in money markets to support the effective implementation of monetary policy and smooth market functioning.”

The dollar rose immediately after the statement but then gave up all the gain and even dropped below previous levels. Chair Powell will hold a press conference.

Technical levels