AUD/USD erases portion of early gains, stays in green around 0.7120
- AUD/USD is clinging to modest gains above 0.7100 on Wednesday.
- US Dollar Index consolidates Tuesday gains, stays below 94.00.
- FOMC will release the minutes of its September meeting.
The AUD/USD pair rose toward 0.7150 area during the European trading hours but struggled to preserve its bullish momentum. As of writing, the pair was still up 0.3% on the day at 0.7125.
DXY retreats modestly ahead of FOMC Minutes
On Tuesday, the broad-based USD strength caused the pair to close deep in the negative territory. After US President Donald Trump announced that they will stop negotiating on the stimulus bill until after the election, safe-haven flows provided a boost to the USD and the US Dollar Index gained 0.4% to close at 93.85.
However, President Trump voiced his support for payroll protection and sending stimulus checks to American families and allowed markets to take a sigh of relief. At the moment, the S&P 500 futures are 0.62% on the day and the US Dollar Index is down 0.15% at 93.70.
There won't be any significant macroeconomic data releases featured in the US economic docket in the remainder of the day. At 1800 GMT, the FOMC will release the minutes of its September meeting.
Previewing the FOMC's publication, "the predicate for the Fed's policy innovations is the governors' view that, despite the improved forecast in the Projection Materials, the USD economy is going to need a substantial rate and spending support for several years," said FXStreet analyst Joseph Trevisani. "It is that economic view and any elucidation and details the minutes may provide that give the FOMC record its interest."
Technical levels to watch for