AUD/USD sees an establishment above 0.6300 on cheerful market mood, RBA minutes eyed

The AUD/USD pair has concluded its time corrective move after dropping to near 0.6280 in the early Tokyo session. The asset is aiming to sustain above the immediate hurdle of 0.6300 amid an improvement in the risk appetite of the market participants. A significant drop in safe-haven’s appeal resulted in a steep fall in the US dollar index (DXY). The mighty DXY tumbled to near 112.00 as investors parked their funds into the risk-perceived assets.

S&P500 witnessed a V-shape recovery after nose-diving on Friday. While yields are upbeat as the odds of a hawkish monetary policy by the Federal Reserve (Fed) are rock solid. The 10-year US Treasury yields are confidently sustaining above the critical figure of 4%.

On Tuesday, investors' focus will remain on the release of the Reserve Bank of Australia (RBA) minutes. The market participants will get a detailed explanation of a decline in the pace of hiking interest rates by RBA Governor Philip Lowe. It is worth noting that RBA announced a 25 basis point (bps) hike in the Official Cash Rate (OCR), unlike the spell of a 50 bps rate hike.

Adding to that, the economic fundamentals and monetary policy guidance will be of utmost importance.

Later this week, Australian employment data will be the key event, which will release on Thursday. As per the consensus, the Employment Change will drop to 25k vs. the prior release of 33.5k. While the Unemployment Rate will remain steady at 3.5%. As the economy is maintaining full employment levels, the increment in payroll data may continue at a diminishing rate.