AUD/USD steady at 0.6545 as Fed fails to shift rate cut expectations

• Fed holds rates steady, reiterates inflation and labor market risks.
• Markets still price in three Fed cuts in 2025 despite cautious tone.
• AUD/USD holds near 0.6545 as traders await stronger directional cues on Powell's presser.

The Australian Dollar was unmoved following the Federal Reserve's decision to keep rates unchanged at 4.5%, with policymakers maintaining a cautious tone on inflation and employment. While the Fed emphasized uncertainty and rising risks, it offered no clear signals on future easing, opting instead to stick with its current tightening stance and balance sheet runoff.

Despite this, market pricing remains dovish, with traders still expecting three Fed rate cuts before year-end. AUD/USD held near 0.6545, reflecting investor hesitation to reprice aggressively without new macro triggers. With short-term rate futures paring only minor losses after the announcement, the lack of Dollar momentum kept the Aussie locked in its recent range. Attention now turns to chair Powell's press conference where traders will seek further guidance.