AUD / USD rises further to 0.7270 zone ahead of FOMC Minutes

• The aussie extends gains against the US dollar in US time despite upbeat US data.
• DXY down 0.30%, US yields rise modestly, below Tuesday’s highs.
• The FOMC Minutes will be published at 19:00 GMT.

The pair AUD/USD It gained momentum during the US session and rose to 0.7268, reaching the highest level since the Asian session on Monday. It remains near the highs as traders await the FOMC Minutes.

The US dollar is falling across the board, unable to benefit from better-than-expected economic data. US yields remained below Tuesday’s high, still near monthly highs.

AUD / USD is back near the 0.7275 / 80 resistance area that capped the upside last week. A break to the upside should clear the way for 0.7300. On the other hand, support emerges at 0.7240 and then 0.7220. A daily close below the 20-day moving average at 0.7190 would weaken the outlook for the Australian dollar.

US Data Exceeds Expectations, FOMC Minutes Approaching

ADP’s employment report for December beat expectations as the private sector added 807,000 jobs, compared to the market consensus of 400,000. The dollar initially rose but then weakened. Those numbers look like a preview of Friday’s non-farm payrolls.

Later Wednesday, the Federal Reserve will release the minutes of its December meeting. Markets will be looking for clues as to when the conditions for take-off are likely to be met. WIRP suggests almost 2 out of 3 probabilities of takeoff on March 16, while May 4 is fully discounted. Some are looking for clues to reducing the balance sheet, but we think it is too early for that, “said analysts at Brown Brother Harriman.

Technical levels