AUD Bounces Off Key Support as Traders Weigh Fed Hike and Trump's Rate Calls

The Australian Dollar (AUD) held firm near 0.7090 in early Asian trading as investors digested the latest Federal Reserve rate increase and comments from US President Donald Trump.

The Fed lifted its benchmark rate to a range of 3.75% to 4.0%, with Chairman Kevin Warsh saying that the decision was taken because 'inflation is too high and has been for too long', describing it as a 'sober' and 'responsible decision'. He also indicated that rates could rise further to counter persistent price pressures.

Despite the Fed's tightening stance, Trump openly called for an aggressive policy reversal, urging the central bank to cut rates to 1% or less.