AUD/USD breaks higher after Fed meeting as US Dollar slides

• USD and JPY down after Fed’s decision. 
• Fed meeting: FOMC raises rates and upgrades economic outlook. 
• Fed Chairman Powell delivers press conference. 

The AUD/USD pair broke to the upside after the FOMC meeting. It rose above Monday and Tuesday high and reached 0.7762 before pulling back to 0.7740. 

The slide of the US dollar pushed the pair to the upside. The greenback dropped modestly so far in the market, while the yen was the most affected currency so far, affected by higher US yields. 

The Fed delivered market expectations by rising the key rate 25bps to 1.5%-1.75%. The decision was unanimous and the staff upgraded economic projections. Regarding the dot plot, it still shows three rate hikes for 2018. As of writing, Chairman Powell was holding a press conference. 

Levels to watch 

AUD/USD move higher and despite retreating it was still holding above previous highs. The area around 0.7720 has become the immediate support followed by 0.7695 and the weekly low at 0.7670.

To the upside, 0.7770 is the immediate obstacle. Above that level, a test of 0.7800 seems likely. Resistance on top might be seen at 0.7830.