- The Aussie gained about 35 pips as traders deemed that the FOMC’s minutes were not as hawkish as they were anticipating.
- Gold also gained about $6 on the news and traded up to $1,295 a troy ounce as AUD is also affected by the yellow metal’s prices.
The AUD/USD currency pair is trading at around 0.7561 down 0.18% on Wednesday as the market is digesting the FOMC’s minutes.
The Federal Reserve Bank said that it would 'soon be appropriate' to hike interest rates if the economic outlook remains intact. However, the report didn’t contain many hawkish surprises which suggested that the economy was at risk of overheating. In fact, the Fed said: "many saw little evidence of overheating of labor market with wage pressures still moderate.”
AUD is equally supported by the uptick in gold and US equities as the antipodean currency is positively correlated to those markets.
AUD/USD 4-hour chart
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The Aussie is evolving in a rising channel which can also be seen as a bear flag (which is a bearish formation). Key resistance is priced in at the 0.7600 handle swing high and home of the 200-period simple moving average (SMA) on the 4-hour time frame. The next strong resistance level is seen at 0.7650 which is a previous swing low in early April. To the downside, bulls will likely meet support at the 0.7500 figure and demand level and at 0.7450 swing low.
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