AUD/USD marking territory on the 0.76 handle post dovish FOMC minutes

• AUD/USD extending the minor correction post dovish FOMC minutes.
• 0.7729 will need to be overcome.

AUD/USD has broken higher in the minor recovery from 0.7532 lows through the 40hr 50-SMA and onto the 0.76 handle post the release of the FOMC minutes that came with a dovish tint. Currently, AUD/USD is trading at 0.7608, up 0.39% on the day, having posted a daily high at 0.7610 and low at 0.7555.

The DXY is now down -0.65% at 93.339 during the time of writing within a range of between 93.307 - 93.962 now and the commodity bloc are thriving on these minutes:

FOMC minutes: Participants felt an interest rate increase was warranted in near-term

Key headlines from FOMC minutes

• A few opposed near-term hike on weak inflation outlook.
• Meeting included broad inflation debate.
• A few participants said rate hike should be delayed until data showed inflation was clearly on a path to 2%.
• "Many participants" observed that weak inflation could prove persistent and may reflect drop in inflation expectations.
• Some worried Fed could undercut inflation expectations by hiking with inflation below target.
• 'A couple' participants discussed alternative frameworks for inflation, like price-level targeting.
• Most participants continue to believe tighter labor market will ultimately lead to inflation.
• May said employment is at or close to full employment.

AUD/USD levels

While the Aussie is making a correction of the 19th Oct highs at 0.7883 supply, the recent intermediate high on 2 nd November at 0.7729 will need to be overcome to alleviate immediate downside pressure a trigger a retracement to 0.7828/.7886, as argued by analysts at Commerzbank, adding, "below 0.7475 would trigger a deeper sell off to the 0.7330 May low."