AUD/USD hits fresh daily highs above 0.6700 after FOMC

• Federal Reserve raises rates and signals potential pause. 
• US Dollar weakens after FOMC statement.
• AUD/USD testing 0.6700 amid volatility. 

The AUD/USD jumped to 0.6702 after the Federal Reserve’s decision due to broad-based dollar weakness. It then pulled back modestly, trimming some gains. The pair still holds a bullish tone ahead of Chair Powell's press conference.

Fed raises, probably for the last time in a while 

The Fed raised rates to 5.00% - 5.25%, the highest level since 2007, as expected. In the statement, the central bank signaled a potential pause. Chair Powell will offer a press conference and answer questions. He is unlikely to declare 'mission accomplished' and will probably highlight that what happens next is 'data-dependent'.

The US Dollar Index (DXY) dropped to 101.07 before returning to 101.35. It is still down for the day but off its lows. US yields printed fresh lows after the decision but then bounced, and are now slightly above the level they were at before the statement. US stocks hit new daily highs but then pulled back to prior levels.

The AUD/USD pair jumped to 0.6702, hitting a fresh daily high before pulling back under 0.6700. It still holds bullish momentum amid elevated volatility. Above 0.6705, the next resistance is seen at Tuesday's high of 0.6717, followed by 0.6745/50. On the flip side, 0.6675 is the immediate support, followed by 0.6650.

Technical levels