USD/CAD: Loonie pair has pulled back with a huge momentum during the US session yesterday, having refreshed highs above 1.2450. The pair is now trading around 1.2380. FX markets were volatile during the US session given the Fed policy announcement and press conference with Fed Chair Jerome Powell. The US dollar is seeing broad weakness in response to the announcement, and that is the main reason why USD/CAD has been able to pull back from highs. On the other hand, falling oil prices are weighing on oil-sensitive currencies like the Canadian dollar. Some analysts believe that now, after a date has been set for the resumption of US-Iran nuclear talks, oil and CAD prices may face even greater pressure.
AUD/USD: AUD/USD bears are moving in from a first resistance area for the session ahead, although the risks are skewed to the upside considering the release of September Australian Trade Balance and Retail Sales data, which came in mixed. The dovish comments from Powell weakened the US dollar, triggering a fresh uptrend in the riskier assets like the Aussie. As market participants process the Fed’s decision, traders will shift their attention towards Friday’s Monetary Policy Statement from the Reserve Bank of Australia and the US NFP release. Also, the AUD/USD will take cues from the US weekly jobless claims data.
GOLD: XAU/USD shows a bullish dynamic during the Asian session, trading at a pretty strong resistance of $1775. Yesterday, the Federal Reserve decided to keep rates unchanged at the 0 to 0.25% range. The central bank said it would reduce bond purchases by $15 billion a month, until the end of the stimulus, by the first half of 2022. In its monetary policy report, the US central bank hinted that higher inflationary pressures are transitory and noted that supply and demand imbalances related to the pandemic have contributed to sizeable price increases in some sectors.