FOMC Cuts Rates Again as Global Markets Rally

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Forex Market 

USD Softens After FOMC; AUD Firms on Risk Bid

The USD eased overnight after the Federal Reserve delivered a widely expected 25bp rate cut, marking its third consecutive move. Despite three dissents, the Fed maintained its existing rate path while revising 2025–26 Core PCE lower and lifting its 2026 GDP outlook. AUD/USD traded with a firmer tone, moving within a buoyant 0.66285–0.6686 range and finishing near session highs as markets reacted positively to the decision. Buying interest remains solid above 0.6600, while topside offers continue to emerge around 0.6695/0.6700.
Across majors, EUR/USD and GBP/USD pushed to 1.1700 and 1.3388 respectively before easing back into mid-range levels through the European afternoon. NZD/USD also gained, reaching 0.5823 highs, while USD/JPY slipped toward 155.80 as Treasury yields edged lower. USD/CAD briefly spiked to 1.3870 after the Bank of Canada left rates unchanged at 2.25% but later retreated to new lows of 1.3784 as the USD weakened broadly.
Equity markets were mixed through the session but strengthened sharply post-FOMC, with the Dow Jones up 1.3% and the S&P 500 up 0.8% into the close. In commodities, Brent crude traded firmer around $62.60/bbl, while gold extended gains on the softer USD. With attention now turning to Australian labour data and the delayed U.S. trade balance release, currency markets are expected to remain active heading into the Asian session.

General Market

Wall Street

  • Dow Jones: +1.3%
  • S&P 500: +0.8%
  • Nasdaq: +0.5%
  • U.S. 10-year yield: ↓ to 4.13%
  • Gold: +0.8%
  • Brent Crude: +1.1% to $62.60/bbl
  • Dollar Index: 98.59–99.25 range

Asia-Pacific

  • Hang Seng: +0.4%
  • Shenzhen: -0.1%
  • Nikkei: -0.1%
  • ASX 200: -0.1%, dragged by tech (-1.5%) and industrials (-0.9%)
  • AUD/USD: 0.66286–0.6654 intraday range

Europe

  • DAX: -0.1%
  • CAC: -0.4%
  • FTSE: +0.1%
  • Stoxx: -0.2%
  • U.K. 10-year yield: ↑ to 4.538%
  • EUR/USD: hit 1.1657 before falling back to mid-range
  • GBP/USD: reached 1.33255 then eased lower

 

Headlines to Watch 

United States

  • September Trade Balance release (delayed due to shutdown)
  • Initial Jobless Claims — assessing labour momentum

Australia

  • November Employment & Unemployment
  • AUD supported above 0.6600; resistance at 0.6695/0.6700

Europe/U.K.

  • BOE Governor Bailey speech — policy clues
  • Mixed performance across European equities

Canada

  • BoC held rates at 2.25%; labour market shows improvement
  • USD/CAD fell to 1.3784 lows

Japan

  • Weekly foreign bond flows

Mid-market rates

Currency PairMid-market Rate
AUD/USD0.6674
AUD/NZD1.1476
AUD/JPY103.92
AUD/CNY4.7128
AUD/EUR0.5704
AUD/GBP0.4985
AUD/HKD5.1933

 

 

 

 

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