The AUD/USD retreated around 50 pips during the early European session and was last seen hovering near the lower end of its daily trading range, around the 0.7800 mark. The pair added to the previous day's post-FOMC rebound from the 0.7700 mark and got an additional boost from Thursday's stellar Australian employment detail. Bulls, however, struggled to capitalize on the move beyond the 0.7835-40 region amid some aggressive US dollar short-covering bounce.
The Fed on Wednesday indicated that it was in no rush to raise interest rates at least through 2023, albeit upgraded its economic projections. The central bank now predicts the economy to grow by 6.5% in the current year. Inflation is expected to exceed the Fed's 2% target and rise 2.4% this year.