AUD Crushed as Fed Fails Market Expectations

The Australian dollar has been crushed as the Federal Reserve's interest rate hike did not meet market expectations, according to David Llewellyn-Smith, Chief Strategist at the MB Fund and MB Super. The Fed hiked rates, causing the DXY to roar higher while the AUD fell sharply.

Oil prices have eased but still look poised to continue their upward trend. In contrast, gold has been hit hard by the recent market moves, making it a poor performer in these conditions.

The market's reaction suggests that investors are seeking safe-haven assets as they anticipate further rate hikes and economic uncertainty. The full implications of this trend will likely take time to unfold, but one thing is clear: the Australian dollar has been severely impacted by the Fed's actions.