FxWirePro: AUD/USD extends Fed-led rally, upbeat Australia jobs market data provides additional boost

AUD/USD chart - Trading View 

AUD/USD spikes past 0.78 handle, extends Fed-led gains as a strong Aussie jobs data provides additional support.

Australian Unemployment Rate dropped in February to 5.8% which was better than the expected 6.3%, down from a peak of 7.5% in July.

Australia's February Employment change arrived at +88.7K a huge beat on the expected +30K.

On Wednesday, Fed policymakers opted to maintain the current policy setting, reiterating their commitment to accommodative monetary policy. 

The dot plot showed that the majority of policymakers expected to maintain interest rates at record lows into 2024, pushing equities and risk assets higher.

The FOMC made upward revisions to their GDP and inflation outlook and lowered its estimates of the unemployment rate.

The U.S. dollar fell across the board as markets absorbed the Fed’s commitment to a dovish monetary policy. 

Ten year treasury rates retraced early gains, while equity markets trended higher into positive territory.

AUD/USD technical bias has turned bullish after break above 20-DMA. The pair looks set to re-test yearly highs at 0.80 mark.