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19 Mar 2014
AUD/USD slumps after FOMC statement
FXStreet (Córdoba) - The AUD/USD dropped more than 60 pips in a matter of minutes as the greenback soared across the board after the Federal Reserve announced a further $10 billion cut to its QE program.
The AUD/USD fell sharply and touched a low 0.9047 before the 200-hour SMA offered support, extending its pullback from a 3-month high of 0.9137 scored during the Asian session. At time of writing, the AUD/USD is trading at the 0.9050 area, recording a 0.8% loss on the day.
Fed statement
The Federal Open Market Committee decided to cut its assets purchases by $10 billion for the third straight meeting in March to $55 billion a month from $65 billion starting in April. The Fed also shifted its forward guidance on how long it plans to keep short-term interest rates at exceptional low levels, dropping the 6.5% numerical threshold on the unemployment rate.
The AUD/USD fell sharply and touched a low 0.9047 before the 200-hour SMA offered support, extending its pullback from a 3-month high of 0.9137 scored during the Asian session. At time of writing, the AUD/USD is trading at the 0.9050 area, recording a 0.8% loss on the day.
Fed statement
The Federal Open Market Committee decided to cut its assets purchases by $10 billion for the third straight meeting in March to $55 billion a month from $65 billion starting in April. The Fed also shifted its forward guidance on how long it plans to keep short-term interest rates at exceptional low levels, dropping the 6.5% numerical threshold on the unemployment rate.