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AUD/USD retraces Fed-driven spike

FXStreet (Córdoba) - AUD/USD reached fresh 3-week highs in the minutes that followed the Fed decision to keep rates unchanged, but then turned lower retracing almost completely the spike as investors continue to asses Fed rhetoric.

Fed Chair Yellen said the timing of the lift-off remains data-dependent and they will like to see further improvement in employment and inflation. However, she noted that most participants continue to anticipate an increase in the Federal funds rate by the end of this year.

The greenback initially weakened across the board but then managed to recover ground versus commodity currencies as the Fed expressed concerns about the global economy. AUD/USD is currently trading at 0.7205, still up 0.13% on the day.

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