AUD/USD consolidates Tuesday's losses around mid-0.7200s ahead of FOMC Minutes

• AUD/USD stays relatively calm following Tuesday's sharp fall.
• US Dollar Index stays above 93.00 on Wednesday.
• Investors remain focused on risk sentiment, await FOMC Minutes.

Following Tuesday's sharp decline, the AUD/USD pair touched its lowest level since November at 0.7239 on Wednesday before going into a consolidation phase. As of writing, the pair was virtually unchanged on a daily basis at 0.7252.

AUD struggles to gather recovery momentum

Earlier in the day, the data from Australia revealed that the Westpac Leading Index declined to -0.11% in July from -0.07%. Furthermore, the Wage Price Index increased by 0.4% on a quarterly basis in the second quarter and missed the market expectation of 0.6%. The disappointing data releases and the Reserve Bank of Australia's cautious tone regarding the economic outlook seem to be making it difficult for the AUD to stage a decisive rebound.

On the other hand, the US Dollar Index is moving up and down in a tight range above 93.00 after posting strong gains on Tuesday. Currently, the S&P Futures and the Nasdaq Futures both trade flat on the day, suggesting that the risk sentiment will unlikely be able to provide a directional clue to AUD/USD after the opening bell.

The only data from the US showed that Housing Starts declined by 7% on a monthly basis in July while Building Permits increased by 2.6%. Later in the session, the FOMC will release the minutes of its July policy meeting.

Technical levels to watch for