AUD/USD Remains Under Pressure Below 0.7100, Market Awaits Minutes
The AUD/USD pair moved with a negative bias and struggled to break through the 0.7100 area during Wednesday's Asian session. The previous day's gains from a more than week-low were unable to sustain, as the US dollar strengthened moderately ahead of the release of the FOMC Meeting Minutes.
In recent trading, AUD/USD was hovering around 0.7075–0.7070, down just over 0.10% for the day. However, downward pressure is considered relatively limited as market participants are still holding their positions awaiting clearer policy signals from the Fed.
From a fundamental perspective, the market is increasingly confident that the Fed will begin cutting interest rates in June and potentially make at least two more cuts throughout 2026. These expectations, coupled with news of progress in the US-Iran nuclear talks, could reduce the US dollar's appeal as a safe-haven asset and provide support for riskier currencies like the Australian dollar.
Furthermore, the Reserve Bank of Australia's (RBA) continued hawkish stance, making market participants cautious about taking aggressive short positions on the Aussie. Market focus is now on the Fed minutes, as the results could be a new trigger for determining whether the dollar will strengthen or weaken again. (asd)
Source: Newsmaker.id
