# Analysis When the US Federal Reserve acts, the Australian economy braces for damage

> ABC News explains that the US Federal Reserve's 25-basis-point rate cut lifted the Australian dollar by about 0.5% within seconds. The article says lower US rates make Australian assets more attractive and that the Reserve Bank wants to avoid an appreciating exchange rate given slowing growth.

- Date: 2019-11-01 · published 2019-11-01T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/56332-analysis-when-the-us-federal-reserve-acts-the-australian-economy-braces-for
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Australian Dollar (USD per AUD)](https://feedsoft.ai/c/AUDUSD.md)

## Why it matters

Fed rate moves shift global capital flows and the dollar, which affects dollar-priced commodity values and Australian export competitiveness. The article is explanatory and reports no new supply or demand shock.

## 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 | 2020-09-01 | [Federal Reserve's inflation target fudge: what it means for Australians - ABC News](https://feedsoft.ai/events/51368-federal-reserve-s-inflation-target-fudge-what-it-means-for-australians-abc-news.md) | +0.6% | +1.5% |
| 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 | 2022-12-01 | [Australian dollar races up after US Federal Reserve chairman Jerome Powell hints at smaller rate increases](https://feedsoft.ai/events/38484-australian-dollar-races-up-after-us-federal-reserve-chairman-jerome-powell.md) | -0.6% | -1.5% |
| DXY | 2020-03-16 | [Federal Reserve cuts rates to zero to support the economy during the coronavirus pandemic \| CNN Business](https://feedsoft.ai/events/54045-federal-reserve-cuts-rates-to-zero-to-support-the-economy-during-the.md) | +3.7% | +1.4% |

## Sources

- abc.net.au: https://www.abc.net.au/news/2019-11-02/australia-economic-policy-bind-reserve-bank-hamstrung/11663902

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