# Aussie dollar slump 'knee-jerk' reaction to Fed

> The Australian dollar fell 1.4 percent to below US74 cents after the US Federal Reserve raised rates for only the second time in a decade and signaled faster hikes in 2017. The currency recovered partly after Australian employment data showed 39,100 jobs created in November, and was trading near US74.3 cents later in the day.

- Date: 2016-12-15 · published 2016-12-15T12:00:00.000Z
- Category: macro · region Australia · magnitude medium
- Page: https://feedsoft.ai/events/73707-aussie-dollar-slump-knee-jerk-reaction-to-fed
- Commodities: [Australian Dollar (USD per AUD)](https://feedsoft.ai/c/AUDUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A stronger US dollar after Fed hikes tends to weaken commodity currencies and can make US-priced feed inputs cheaper for non-US buyers in AUD terms. Strong Australian jobs data limits the slide, so the effect on grain and oilseed prices is modest.

## Read by commodity

- DXY: bullish ▲
- AUDUSD: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2023-11-01 | [The Aussie Dollar is Tied to China’s Outlook](https://feedsoft.ai/events/33883-the-aussie-dollar-is-tied-to-china-s-outlook.md) | -1.4% | -2.9% |
| DXY | 2022-09-28 | [Aussie dollar slumps to three-year lows, below US65c - Sheep Central](https://feedsoft.ai/events/39841-aussie-dollar-slumps-to-three-year-lows-below-us65c-sheep-central.md) | -1.8% | -1.5% |
| DXY | 2026-10-26 | [Aussie Dollar loses grip on 0.70 rally as Fed, RBA inflation tests lurk](https://feedsoft.ai/events/17328-aussie-dollar-loses-grip-on-0-70-rally-as-fed-rba-inflation-tests-lurk.md) | +0.3% | — |
| DXY | 2022-10-31 | [Dollar Rebounds, Aussie Weakens ahead of RBA - ActionForex](https://feedsoft.ai/events/39394-dollar-rebounds-aussie-weakens-ahead-of-rba-actionforex.md) | -0.1% | -2.8% |
| DXY | 2021-03-01 | [Dollar gains on reflation trade, Aussie recovers \| Financial Post](https://feedsoft.ai/events/48359-dollar-gains-on-reflation-trade-aussie-recovers-financial-post.md) | +0.8% | +0.8% |

## Sources

- afr.com: https://www.afr.com/markets/equity-markets/aussie-dollar-slump-kneejerk-reaction-to-fed-20161215-gtbond

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