AUD/USD hits 4-week highs above 0.7300 after FOMC

• AUD/USD gains momentum after Fed’s decision and prints 4-week highs. 
• Greenback weakens moderately as market participants digest the statement and await projections and the press conference. 

The AUD/USD pair jumped from 0.7255 to 0.7307, hitting the highest level since August 30 after the release of the FOMC decision. Then pulled back modestly back under 0.7300. As of writing, before the press conference, was hovering around 0.7290, up for the day and still holding a positive tone. 

The Fed announced a 25bps rate hike, to 2.00-2.25%. It was the third hike so far 2018 and another in December is expected. The slide of the US dollar can be attributed to the removal in the statement to the reference to the current stance of policy as being “accommodative” that could be seen as a dovish bias. 

AUD/USD Technical levels 

The 0.7300 area is the key short-term resistance level. A consolation on top would reinforce the current positive tone for the Aussie. Above the next obstacle could be seen at 0.7325/30 and 0.7345. If the pair fails at 0.7300 it could lose the positive bias with a slide back under 0.7225/30, before support levels are seen at 0.7280 and 0.7255.