Buy AUDUSD After 2024 High, As Markets Rethink 50 bps FED Cut

Today AUDUSD printed a new high for the year, as risk sentiment improved, so we decided to go long and open a buy AUD/USD signal. Yesterday we saw a dip following the FED statement, after the price touched 0.6820  right after the 50 BPS rate cut, however, today buyers are back in, as markets reevaluate the FED policy.

AUD/USD Chart H1 – Consolidating Above the 0.68 Resistance

Today’s market focus revolves around digesting the post-Fed decision and the US dollar is falling, while stock markets are moving higher again. Following yesterday’s 50 basis point Fed rate cut, the dollar initially dropped 50 pips, then rebounded by 1 cent. AUD/USD dipped to 0.6737, before rebounding exactly 1 cent higher to touch 0.6838.

So, the mood shifted overnight as markets reassessed the FOMC’s move, sending the dollar back down. The volatility seen after the Fed announcement reflected a “sell the fact” response, with Asian markets calming fears by viewing the rate cut as a measured move, not a sign of panic.

Key FOMC Decision Takeaways:

• The Fed’s decision caused market turbulence, but confidence is returning as traders digest the policy shift.
• Jerome Powell, the Fed’s chair, reinforced the Fed’s commitment to maintaining economic strength, echoing his comments from Jackson Hole, where he emphasized the Fed’s desire to avoid any further deterioration in the job market.
• As a result, US stock markets such as S&P 500 opened at record highs and remain bullish, with optimism around the prospect of a soft landing despite the monetary policy adjustments.

This cautious optimism suggests markets are balancing the rate cut with hopes that economic growth can remain stable without triggering a significant downturn.

AUD/USD Live Chart