AUD/USD picks up from lows near 0.6200 as the US Dollar gives away some gains

• The Aussie corrects higher following a sharp sell-off on Wednesday but maintains its negative trend intact.
• A hawkish Fed stance boosted risk aversion and sent the Aussie to fresh two-year lows on Wednesday.
• Investors see the t RBA cutting rares ahead of schedule, which is weighing on the AUD.

The Australian Dollar is trading with minor gains on Thursday, bouncing up from multi-year lows at 0.6200, following a sharp sell-off after Wednesday’s monetary policy decision by the Fed.

The US central bank cut interest rates by 25 basis points to 4.25%, as widely expected but signaled a slower monetary easing path next year which boosted risk aversion and sent the Aussie tumbling.

US inflation and GDP growth expectations for next year have been revised higher, while unemployment is seen growing at a slower pace. All in all suggesting that the bank will take a long break before cutting rates again.

In Australia, the Consumer inflation expectations increased to 4.2%, from the 3.8% level seen in November: The Aussie, however, remains vulnerable with the market foreseeing a worsening economic scenario that will force the RBA to cut rates ahead of schedule.