AUD/USD rises to the 0.7500 area after FOMC minutes

• US dollar retreats after the Fed’s minutes.
• AUD/USD consolidates recovery from 0.7460, still unable to recover 0.7500.

The AUD/USD rose from 0.7485 to 0.7506 following the release of the FOMC minutes. A decline of the greenback boosted the pair that erased daily losses. It still trades near closer to the monthly low than to Tuesday’s top.

No major surprises from the minutes

The minutes showed Fed officials consider the standard of “substantial further progress” needed to adjust monetary policy was seen as not having yet been met. Various FOMC members mentioned they expect conditions to reduce the pace of asset purchases to be met earlier than previously expected.

The US dollar pulled back across the board after the minutes, erasing daily gains. The DXY turned negative, falling to the 92.50 zone. US yields remain near daily lows. The10-year stands at 1.31%, on its way to the lowest close since February 18.

Short-term outlook

The AUD/USD still holds a bearish bias, with price well under the 20-day simple moving average (SMA). A recovery above 0.7540 would alleviate the pressure and above 0.7600/05 the Aussie will strengthen. The 20 and 200-day SMA converge at the 0.7560 area that will be a level to watch.

On the flip side, the key support stands at 0.7455. A consolidation below would clear the way to more losses, with the first target around 0.7400.

Technical levels