The Australian Dollar pared losses after the Federal Reserve maintained its benchmark rate, with three officials dissenting in favor of a hike.
The Australian Dollar trimmed earlier losses, with AUD/USD trading at 0.6950, down 0.32% after the Federal Reserve kept interest rates steady at 5.25%-5.50%. The decision was supported by a 9-3 vote, with dissenters pushing for a 25-basis-point increase.
The Fed noted steady economic growth, robust productivity, and consistent job gains, despite geopolitical uncertainties. The statement reaffirmed the central bank’s focus on price stability, though three regional Fed presidents favored tighter policy.
Investors are now awaiting Fed Chair Jerome Powell’s press conference for further guidance on future rate moves. The AUD remains under pressure amid broader market sentiment and external factors.