FXStreet (Mumbai) - The AUD/USD pair dropped 40-odd pips to 0.7030 after the Fed reaffirmed gradual policy tightening despite falling market based inflation measures. Hovers around 0.7040 The pair currently trades around 0.7040; up 0.43% on the day. The currency pair fell from 0.7071 after the Fed statement showed the policy makers remain in favor of gradual tightening. This made sure the USD was not sold despite negative comments on USD strength and inflation expectations. The focus now shifts to the Reserve Bank of New Zealand rate decision and its impact on the AUD/NZD cross. AUD/USD Technical Levels The immediate support is seen at 0.7001 (hourly 100-MA and hourly 50-MA), under which the pair could drop to hourly 200-MA at 0.6946. On the other hand, a break above the daily high of 0.7082 could send the pair higher to 0.7145 (hourly 50-MA). For more information, read our latest forex news.