US sharemarkets pump higher post Fed
The US dollar was higher for a second day as markets continue to react to this week’s Federal Reserve decision.
Global sharemarkets were higher after the Fed’s cut with the Dow Jones, S&P. Nasdaq and Russell 2000 setting a unique record. All four indexes closed at all-time highs for the first time since 2021 – and only the 25th time this century.
The US dollar gained across the board with the AUD/USD also lower for the second day – down 0.6%.
The kiwi was hit harder after a weaker-than-expected June-quarter GDP number. The NZD/USD fell 1.4%.
Aussie slips as full-time jobs vanish
Australia’s job market stumbled last month, with headline employment dropping by 5,400—far below the expected 21,000 gain.
The damage came entirely from full-time roles, which plunged by 40,900, while part-time jobs rose by 35,500. Despite the shake-up, the unemployment rate held steady at 4.2%, and the participation rate dipped slightly from 67% to 66.8%.
AUD/USD took a hit after the FOMC meeting, trailing behind as hopes for rate cuts faded and commodity prices softened. The Aussie fell further on Thursday,
The pair is now approaching key support levels at 0.6590 (21-day EMA), followed by 0.6546 (50-day EMA).
Powell drives USD/SGD bounce
The USD was also stronger in Asia following Fed chair Powell’s shift into “risk management” during his press conference, steering away from the more cautious “calibration” approach.
Powell’s core message: the labour market has already cooled, and the Fed doesn’t want it to weaken further. He pointed out that while job growth has slowed, landing a job has become tougher.
The Fed’s stance came across as more assertive than expected. Powell emphasized that unemployment remains low and noted that the economy is “moving along,” with consumer spending beating forecasts.
This wasn’t a signal for looser policy. It was a reminder that the Fed is still watching inflation closely.
USD/SGD bounced back after the FOMC meeting, climbing 0.7% from its recent low of 1.2698, which could tempt USD buyers to step in.
Watch for resistance at 1.2825 (21-day EMA), followed by 1.2844 (50-day EMA).
USD higher again
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 15 – 19 September
All times AEST
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*The FX rates published are provided by Convera’s Market Insights team for research purposes only. The rates have a unique source and may not align to any live exchange rates quoted on other sites. They are not an indication of actual buy/sell rates, or a financial offer a unique source and may not align to any live exchange rates quoted on other sites. They are not an indication of actual buy/sell rates, or a financial offer.
