AUD/USD recovers following Chair Powell's words

• The AUD/USD recovered above 0.6600.
• The Fed held rates steady as expected at 5.50%.
• Chair Powell embraced policy normalization "at some point" in 2024. 

In Wednesday's session, trends in the AUD/USD  recovered above 0.6600 from 0.6585 during Chair Powell's presser. The Federal Reserve (Fed) didn't change its policy as expected while but markets took the Chairman's words as dovish validating the expectations of the easing cycle to start in May which boosted the pair.

Jerome Powell noted that the inflation data from the last six months was welcomed but that the committee need's to see further data in order to be confident. He also added that it seems likely that the bank will achieve that mentioned confidence and that the officials consider appropiate eventually cutting rates.

AUD/USD levels to watch

Indicators on the daily chart indicate that buyers are holding their ground but as long as the fail to conquer the 20-day Simple Moving Average (SMA), the outlook won't be totally bullish for the immediate short term. On the downside, as long as it holds above the 200 and 100-day SMA, the overall trend will remain positive