Traders await July Fed meeting minutes for clues on rate hike timing amid mixed USD sentiment and weak AUD wage data.
The Australian Dollar (AUD) rebounded from intra-week lows near 0.7065 against the USD, though it remains below the 0.7080 support level. The move follows a broader USD pullback as markets await the Federal Reserve’s July meeting minutes for policy guidance.
The AUD/USD pair has struggled amid risk aversion tied to Middle East tensions and higher oil prices. Domestically, weak wage growth data has also weighed on the currency. Analysts suggest the Fed minutes may offer limited USD support, with focus shifting to upcoming CPI and jobs data.
ING expects the minutes to lack major hawkish surprises, reinforcing expectations that the Fed may pause rate hikes in September. The firm maintains a base case for a softer USD ahead.