AUD/USD bulls welcome a less hawkish outcome at the Fed

The AUD/USD pair is moving through a critical level on the daily chart (see below) and has reached a high of 0.7000 following a dovish outcome at the Federal Reserve. AUD/USD has climbed by over 0.8% on the day so far from a low of 0.6911 to a high of 0.7000.

The US dollar has come under pressure along with US yields which have given a lifeline to the commodities sector and US stocks following a dovish tilt at the Federal Reserve that raised rates by the expected 75bps, but lower than the 100 bps that in part had been anticipated in the face of rising inflation.

The Fed says recent indicators of spending and production have softened. Fed also says job gains have been robust, the unemployment rate has remained low.

Traders are pricing for a more dovish outcome for the September meeting as the Fed turns data-dependent.