# AUD tumbles on heels of divergent RBA and Fed policy outlooks - OFX (US)

> The Australian dollar fell to fresh lows near US$0.6575 after the RBA softened its tightening bias and Fed Chair Powell delivered a hawkish testimony. The currency broke key support levels as the rate outlooks diverged.

- Date: 2023-03-07 · published 2023-03-07T12:00:00.000Z
- Category: macro · region Australia · magnitude low
- Page: https://feedsoft.ai/events/37125-aud-tumbles-on-heels-of-divergent-rba-and-fed-policy-outlooks-ofx-us
- Commodities: [Australian Dollar (USD per AUD)](https://feedsoft.ai/c/AUDUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Divergent RBA and Fed policy pushes the dollar higher against the Aussie, which can make Australian grain and meat exports more competitive abroad.

## Read by commodity

- DXY: bullish ▲
- AUDUSD: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2018-03-01 | [US/German bond yield gap widest in 20 years on diverging policy outlooks](https://feedsoft.ai/events/66193-us-german-bond-yield-gap-widest-in-20-years-on-diverging-policy-outlooks.md) | -0.1% | -0.8% |
| DXY | 2024-01-30 | [AUD range bound ahead of key inflation data and Fed policy update - OFX (NZ)](https://feedsoft.ai/events/32399-aud-range-bound-ahead-of-key-inflation-data-and-fed-policy-update-ofx-nz.md) | +0.4% | +0.1% |
| DXY | 2018-10-31 | [USDJPY remains supported amid growing BoJ and Fed policy divergence](https://feedsoft.ai/events/62770-usdjpy-remains-supported-amid-growing-boj-and-fed-policy-divergence.md) | -0.6% | -0.0% |
| DXY | 2019-07-31 | [Dollar up, stocks tumble after Fed rate outlook as pound stalls \| Malay Mail](https://feedsoft.ai/events/58020-dollar-up-stocks-tumble-after-fed-rate-outlook-as-pound-stalls-malay-mail.md) | +0.9% | +1.8% |
| DXY | 2023-04-04 | [Lisa D Cook: The US economic outlook and monetary policy](https://feedsoft.ai/events/36300-lisa-d-cook-the-us-economic-outlook-and-monetary-policy.md) | +0.4% | +0.1% |

## Sources

- ofx.com: https://www.ofx.com/en-us/forex-news/daily-and-weekly-market-news/2023/03/08/aud-tumbles-on-heels-of-divergent-rba-and-fed-policy-outlooks/

---
Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.