AUD/USD retreats after Fed’s minutes

• US dollar rose following a positive tone from the FOMC minutes.
• AUD/USD retreats further after minutes and turns negative for the day. 

The AUD/USD pair extended the slide from levels on top of 0.7400. The pair bottomed at 0.7372 after the release of the minutes from the latest FOMC meeting. 

The pair is now posting modest losses for the day but still remains above daily lows. The impact from the minutes so far has been modest. Overall, AUD/SUD continues to move sideways around 0.7370/90.

The minutes from the Fed’s June 12-13 meeting, when the Federal Reserve raised its key rate to 1.75-2.0%, showed that indicators of longer-term inflation expectations were little changed and remained on balance. The FOMC sees gradual rate hikes, needed amid the strong economy. 

The US dollar rose moderately across the board after the minutes. Gold turned lower and US bond yields remained little changed. 

AUD/USD Levels to watch 

To the upside, 0.7390 and 0.7405/10 are the immediate resistances, followed by the strong 0.7440 area. On the flip side, below 0.7370, support might be seen at 0.7370, 0.7340 and 0.7320.