Australian dollar breaks the 2023 low after a hawkish Fed dot plot shift

AUD/USD has dipped below the 2023 intraday low of 0.6270 after the Federal Reserve interest rate decision. The Fed cut rates by 25 basis points, as expected but the dot plot forecast for 2025 rose to 3.9% from 3.4%. Most market watches were expecting 3.6% or 3.7%.

That’s kicked off a broad round of US dollar buying that pushed AUD/USD below the 2023 and down to the worst levels since 2022.

The next level of support is the 2022 low of 0.6170, which is roughly 1 cent away.

This article was written by Adam Button at www.forexlive.com.