The magnetic properties of well-characterized (001)Fe/Pd superlattices prepared by molecular beam epitaxy are presented. The saturation magnetization is enhanced due to the polarization of the Pd interface, and analysis of hysteresis loops indicate low coercive fields, abrupt magnetic reversals, and ferromagnetic coupling between the Fe layers for all Pd thicknesses investigated (10-50 angstrom). It is also found that deposition on a stationary substrate can create a weak uniaxial in-plane anisotropy, which, for one of the two easy directions of Fe, causes a spontaneous rotation of the magnetization by 90-degrees at low fields. This effect is clearly demonstrated by optical Kerr-effect imaging of the magnetic domain structure, and can be mistaken for antiferromagnetic coupling with very weak coupling fields. The strength of this uniaxial anisotropy is found to oscillate rapidly with Pd thickness, suggesting that it is very sensitive to the microstructure.