# Australian dollar races up after US Federal Reserve chairman Jerome Powell hints at smaller rate increases

> Australian shares and the Australian dollar rallied after Federal Reserve Chair Jerome Powell said the central bank could slow the pace of interest rate increases as soon as its December meeting. He cited easing inflation pressures in the speech in Washington.

- Date: 2022-12-01 · published 2022-12-01T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/38484-australian-dollar-races-up-after-us-federal-reserve-chairman-jerome-powell
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Australian Dollar (USD per AUD)](https://feedsoft.ai/c/AUDUSD.md)

## Why it matters

Expectations of slower US tightening weaken the dollar and lift currencies like the Australian dollar, which can make dollar-priced commodities cheaper for non-US buyers. The effect on feed prices is indirect.

## Read by commodity

- DXY: bearish ▼
- AUDUSD: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2019-06-02 | [The Australian dollar is grinding higher as expectations for rate cuts from the US Federal Reserve build](https://feedsoft.ai/events/58849-the-australian-dollar-is-grinding-higher-as-expectations-for-rate-cuts-from-the.md) | -0.8% | -1.8% |
| DXY | 2024-08-26 | [Interest rates: US dollar sinks as traders position for rate cuts by the Federal Reserve](https://feedsoft.ai/events/28691-interest-rates-us-dollar-sinks-as-traders-position-for-rate-cuts-by-the-federal.md) | +0.7% | -0.0% |
| DXY | 2022-11-02 | [US dollar falls broadly after the Fed hints at a slower pace of rate hikes](https://feedsoft.ai/events/38845-us-dollar-falls-broadly-after-the-fed-hints-at-a-slower-pace-of-rate-hikes.md) | -1.4% | -4.2% |
| DXY | 2020-04-30 | [Pound-Dollar Rate Aims for the Stars after Federal Reserve Swerves Onto Main Street](https://feedsoft.ai/events/53873-pound-dollar-rate-aims-for-the-stars-after-federal-reserve-swerves-onto-main.md) | +0.7% | -1.4% |
| DXY | 2022-12-01 | [Australian Dollar Flies after Powell Speech - ActionForex](https://feedsoft.ai/events/38489-australian-dollar-flies-after-powell-speech-actionforex.md) | -0.6% | -1.5% |

## Sources

- afr.com: https://www.afr.com/markets/debt-markets/powell-s-hint-of-moderation-boosts-shares-dollar-20221201-p5c2ri

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