• The aussie hits session highs at 0.6475 after Fed's decision.
• The market has seen the bank's statement tilted to the dovish side.
• The FOMC will take the cumulative tightening into account for future hikes.

The US dollar reacted negatively immediately after the release of the Federal Reserve’s monetary policy meeting. The Aussie, which had been trading within a tight range above 0.6400,  has surged to session highs at 0.6470 so far.

Investors see a dovish tone in the Fed’s statement

As was widely expected, the bank has hiked the Federal Funds rate by 75 basis points, for the fourth consecutive time,  to the 3.75% - 4.00% range.

The bank’s statement, however, has seen tilted to the dovish side. The committee observes that in determining the pace of future rate hikes, they will consider “cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments.”

Beyond that, the bank has warned about recent indicators pointing to modest growth in spending and production.
 

Technical levels to watch