AUD/USD back on track towards 0.7600; FOMC statement lacks 'substance'

Currently, AUD/USD is trading at 0.7585, up +0.05% or 3-pips on the day, having posted a daily high at 0.7596 and low at 0.7551.

The Australian dollar vs. American dollar rises 30-pips on the spot as the Fed left rates unchanged during the 1st meeting in 2017. The FOMC statement had little to nothing to offer to traders and investors to keep holding long-dollar positions. 

FOMC statement contained barely any substantive change

Rob Carnell, Chief International Economist at ING notes, "The latest FOMC statement was a virtual non-event and contained barely a hint that rates would rise again soon. If the Fed does intend to raise rates three times this year as their December dot diagram suggested, then they are making it difficult for themselves by not opening the door to a March hike.”

“The only substantive change to the FOMC statement text was “Measures of consumer and business sentiment have improved of late. Inflation increased in recent quarters but is still below the Committee's 2 percent longer-run objective”.

Technical levels to consider

To the downside, support levels might now be seen at 0.7550 (low Feb.1), followed by 0.7527 (low Jan.30) and 0.7457 (horizontal support). On the upside, resistances are seen at 0.7608 (high Jan.24), 0.7620 (horizontal resistance) and 0.7660-80 region (horizontal resistance). 

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