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AUD/USD dropped overnight as the US dollar picked up a bid and took on the 93 area in the DXY.

Risk sentiment was dishevelled on the back of the move in the greenback that started before the FOMC minutes. 

AUD/USD was already below the 21-hour moving average and the minutes were the nail in the coffin for an extension to market structure.

As per the overnight analysis, AUD/USD has reached the downside target at the structure:

AUD/USD ahead of the FOMC minutes:

At the time of writing, AUD/USD is trading at 0.7171,

The price reached a 23.6% Fibonacci retracement level and has been rejected there.

Looking left on the charts, there could be some commitment from the bears at a major structure of the prior uptrend (0.7160/70) before the price might be drawn towards a deeper retracement to the 200-moving average on the 4-hour time frame, 0.7100/7110.