XAUUSD Exchange Rate

Citing a lack of further progress toward its 2 percent inflation objective in recent months, the Federal Reserve on Wednesday announced its widely expected decision to leave interest rates unchanged. Members of the Fed also reiterated they need "greater confidence" inflation is moving sustainably toward 2 percent before they consider cutting interest rates.

Reflecting a decrease in spending on private construction, the Commerce Department released a report on Wednesday showing U.S. construction spending unexpectedly edged slightly lower in the month of March. The report said construction spending dipped by 0.2 percent to an annual rate of $2.084 trillion in March, while economists had expected construction spending to rise by 0.3 percent.

The Institute for Supply Management released a report on Wednesday showing a modest contraction by U.S. manufacturing activity in the month of April. The ISM said its manufacturing PMI slipped to 49.2 in April from 50.3 in March, with a reading below 50 indicating contraction. Economists had expected the index to edge down to 50.0.

A report released by the Labor Department on Wednesday showed job openings in the U.S. fell by more than expected in the month of March.

Powell's dovish stance prompted a sharp decline in the strength of the U.S. dollar, while gold prices rebounded on the prospect of a softer dollar.

The U.S. dollar surged and equities stumbled following the release of the U.S. employment cost index, which revealed a robust 1.2% increase, the sharpest uptick in a year.

The Japanese Yen experienced a significant fluctuation, moving more than 500 pips against the U.S. dollar in the last trading session. This volatility was driven by market speculation regarding potential intervention by Japanese authorities after the Yen surpassed the 160 mark against the dollar.

The Yen breached psychological resistance level at 160 against the U.S. dollar, as market participants observed no signs of Japanese authorities intervention.