Following the release of the Fed’s minutes, the US dollar has weakened.
The AUD/USD is consolidating its rebound from 0.7460, although it is still unable to break through 0.7500.
Following the release of the FOMC minutes, the AUD/USD jumped from 0.7485 to 0.7506. A drop in the value of the dollar strengthened the pair, reversing daily losses. It’s still trading at the monthly low rather than Tuesday’s high.
According to the minutes, Fed officials believe the criteria of “substantial further progress” required to change monetary policy has not yet been satisfied. Several FOMC members stated that they expect the pace of asset purchases to slow down and that criteria would be met sooner than expected.
Following the minutes, the US dollar retreated across the board, wiping off the previous day’s gains. The DXY fell to the 92.50 level, turning negative. US yields are still hovering around daily lows. The 10-year note is currently trading at 1.31 percent, its lowest closing since February 18.
With the price well below the 20-day simple moving average, the AUD/USD remains negative (SMA). The pressure will be relieved if the Aussie recovers over 0.7540, and it will rise above 0.7600/05. The 0.7560 area, where the 20 and 200-day SMAs intersect, will be a key milestone to watch.
The key support, on the other hand, is at 0.7455. A break below 0.7400 would pave the way for additional losses, with the initial target being around 0.7400./n
