AUDUSD TECHS: Monitoring Support

MNI's Jean Yung concludes the press conference, asking Powell about how he views inflation expectations, and whether fiscal deficits and the debate over Fed independence are boosting those expectations. Powell says:

• "Shorter term inflation expectations have tended to respond to near term inflation. So if inflation goes up, inflation expectations will predict that it takes just a little while to get back down. Fortunately, throughout this, this period, longer term inflation expectations, both breakevens in the markets and almost all of the longer term surveys, Michigan being a bit of an outlier lately, have been just rock solid in terms of running at levels that are consistent with 2% inflation over time. So we don't take that for granted. We actually assume that our actions have a real effect on that, and that we need to continually show and also mention our commitment to 2% inflation. And so you'll hear us doing that."
• "The latter part of your question was about independence. I don't see market participants.... I don't see it as something they're factoring in right now in terms of setting interest rates."

• RES 3: 97.796 - 1.618 proj of the Sep 3 - 12 - 15 price swing
• RES 2: 96.685 - 1.000 proj of the Sep 3 - 12 - 15 price swing 
• RES 1: 96.615 - High Sep 12  
• PRICE: 96.550 @ 20:10 BST Sep 17
• SUP 1: 96.435/95.900 - Low Sep 3 / Low Jan 14  
• SUP 2: 95.760 - Low 14 Nov ‘24
• SUP 3: 95.480 - Low Jan 11 2023 and a major support 

Aussie 3-yr futures continue to trade above their recent lows. The short-term resistance to watch is 96.615, the Sep 12 high. Clearance of this level would signal scope for a stronger short-term recovery and pave the way for a climb towards 96.685, a Fibonacci projection. On the downside, first support to watch lies at 96.505, the Sep 15 low. Key short-term support has been defined at 96.435, the Sep 3 low.

• Asked about Gov Miran's comment that the Fed actually has three mandates from Congress, including moderate long-term interest rates (not just the employment and inflation mandates): "We always think of it as the dual mandate, maximum employment and price stability ... we think moderate, long term interest rates are something that will result from low and stable inflation and and maximum employment. So we don't, we haven't thought about that as for a very long time, as a third mandate that requires independent action. So that's where that is. And there's no, there's no thought of, as far as I'm concerned, there's no thought of considering that, you know, considering that we somehow incorporate that in as something in a different way."