The US dollar is at the highs of the day across the board after a pair of important comments from Powell.
1) In the first, he said that GDI revisions last week removed a downside risk for GDP. The fear was that GDP would be revised down to GDI, instead it was GDI revised up to GDP. Powell noted that means more money in consumer pockets and stronger spending.
2) He said the baseline forecast was for 25 bps cuts at each of the final two meetings of the year.
Combined, the comments took down the odds of 50 bps from 43% to 36%. More importantly, the US dollar is at the highs of the day and stock markets are under pressure.
AUD/USD:
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The S&P 500 has dropped about 30 points since he started speaking. US 2-year yields are up 9 bps.