Significant downgrades in expected policy path from the FOMC leaves the USD vulnerable and puts the RBA in a very dark corner with the AUD now well above 75 cents and climbing on structural bond buying and USD repricing a weaker FOMC. The FOMC once again comes to meet the market rather than holding course. The FOMC is still unwilling to ascribe a balance of risks to the US economy making this statement very DOVISH in nature. Whilst not closing the door on June, everything would have to go perfectly in risk markets to make June a probable hike meeting. The dot-plot medians were adjusted downward quite aggressively, by 50bp in 2016 to 0.875%, by 50bp in 2017 to 1.875%, by 87bp in 2018 to 2.375% and 50bp in the long-run to 3.00%. Note that core inflation is expected to be only 1.6% this year – unchanged from December’s view.