Foreign exchange - AUD/USD drops after U.S. price hike

Aussie loses ground vs. greenback on Fed decision

Investing.com – The Australian dollar dropped against its U.S. counterpart on Thursday, as the greenback strengthened broadly after the Federal Reserve raised interest rates for the first time in nearly a decade.

hit 0.7163 during late Asian trade, the pair’s lowest since Tuesday; the pair subsequently consolidated at 0.7188, declining 0.59%.

The pair was likely to find support at 0.7098, the low of November 19 and resistance at 0.7281, Wednesday’s high.

At the conclusion of its policy meeting on Wednesday, by a quarter of a percentage point to between 0.25% and 0.50%, fuelling optimism over the strength of the U.S. economy.

It was the first rate hike in the U.S. since 2006.

Commenting on the decision, Fed Chair Janet Yellen said that further rate hikes would be gradual and data dependent.

The Aussie was lower against the euro, with adding 0.16% to 1.5113.

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Foreign exchange - AUD/USD drops after U.S. price hike