AUD/USD rallies and extends the bullish momentum as the USD was punished by the USDX’s drop. The greenback started to drop aggressively after the FOMC. As you already know, the Federal Reserve has decided to hike the rate, but the traders weren’t too impressed by the FOMC Press Conference.

The Federal Funds Rate was increased by 0.25%, from 1.25% to 1.50%, so it was priced in, that’s why the USD has dropped a little after the FOMC. Remains to see what will happen in the upcoming hours as the United States data have come in better earlier and could boost the greenback.

The Aussie rallied on the mixed Australian and Chinese data. The Aussie received a helping hand from the Australian Employment Change, which has increased from 7.8K to 61.6K, beating the 18.1K estimate, the Unemployment Rate remains steady at 5.4%, matching expectations and the 5.4% in the former reading period. The MI Inflation Expectations remain steady at 3.7%, has come in line with the 3.7% in the last report.

The Chinese Industrial Production increased by 6.1%  in the last month, matching expectations, the Retail Sales increased only by 10.2%, less versus the 10.3% estimate, while the Fixed Asset Investment increased by 7.2%, matching expectations.

Price rallied and resumed the yesterday’s impressive jump. It has managed to climb above the median line (ml) of the minor descending pitchfork and above the lower median line (LML) of the dark blue ascending pitchfork. The next upside target stands at the 50% Fibonacci line (descending dotted line) of the minor descending pitchfork. Remains to see how will react when will hit the 50% Fibonacci line, you can see that this represents a strong dynamic resistance.

The current increase was expected after another failure to reach the lower median line (lml) of the minor descending pitchfork. A larger increase will appear only after a valid breakout above the 50% Fibonacci line.