AUD/USD inter-markets: seems to gain further traction, RBA minutes & Fed in focus

On Monday, a broad based US Dollar weakness helped the AUD/USD pair to break through 0.7525-30 resistance and jump back close to 50-day SMA region to currently trade around 0.7560-65 band.

Fading expectations from the Fed's two-day monetary policy meeting, ending on Wednesday, have been a key factor weighing on the greenback across the board. This accompanied with diverging moves between the US and Australian 10-years Treasury bond yields have been supportive for the pair's latest leg of up-move. 

Moreover, stability in commodity prices (especially copper) is further boosting demand for commodity-linked currencies - like Aussie. However, recovery in the Volatility Index (VIX) is the only intrinsic not favoring the ongoing bullish traction around the AUD/USD major. Hence, a subsequent drop in VIX should now pave way for continuation of the pair's near-term upward trajectory even beyond 0.7600 handle, towards testing an important resistance near 0.7635-40 region.

Central banks will dominate this week's financial markets headlines and could trigger a fresh bout of volatility in the Forex market. Minutes from RBA's latest monetary policy meeting will be in focus during Asian session on Tuesday, while the key determinant would be the Fed monetary policy decision that is scheduled to be announced on Wednesday.