The Australian Dollar pared losses after the Federal Reserve held rates steady in a 9-3 vote, easing pressure on risk-sensitive currencies.
The Australian Dollar trimmed earlier losses, trading at 0.6950 against the USD after the Federal Reserve kept interest rates unchanged. The decision was supported by a 9-3 vote, with three dissenters favoring a 25-basis-point hike.
Prior to the announcement, the AUD had faced downward pressure amid broader USD strength. Market expectations had centered on a hold, though some investors anticipated a more hawkish stance from the Fed.
The immediate reaction saw the AUD/USD pair stabilize, reflecting reduced selling pressure following the Fed’s decision.