AUD/USD advances to fresh daily highs above 0.7530
- AUD/USD is edging higher after closing in the red on Tuesday.
- US Dollar Index fell below 92.50 in the early American session.
- FOMC will release June meeting minutes at 1800 GMT.
After spending the first half of the day in a relatively tight range around 0.7500, the AUD/USD pair gained traction in the early American session and touched a fresh daily high of 0.7534. As of writing, the pair was up 0.4% on the day at 0.7528.
Investors await FOMC Minutes
On Tuesday, AUD/USD rose sharply during the Asian trading hours after the Reserve Bank of Australia (RBA) announced that it reduced its weekly asset purchases to A$4 billion from A$5 billion. In the second half of the day, the renewed USD strength forced the pair to make a sharp U-turn and close the day in the negative territory.
Earlier in the day, the only data from Australia revealed that the AiG Performance of Services Index edged lower to 57.8 in June from 61.2 in May but this reading was largely ignored by market participants.
Later in the session, the JOLTS Job Openings data will be featured in the US economic docket. More importantly, the FOMC will release the minutes of its June meeting, which revealed a hawkish shift in policymakers' rate outlook. Investors will look for fresh clues regarding the timing of tapering.
FOMC Minutes June Preview: A view of the Jackson Hole agenda.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
