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  • AUD/USD edged higher in the early American session on Wednesday.
  • US Dollar Index stays in the negative territory below 93.70.
  • Wall Street’s main indexes trade sharply higher on stimulus hopes.

After retreating to 0.7120 area during the European session, the AUD/USD pair gained traction and rose to a daily high of 0.7152 on Wednesday. As of writing, the pair was up 0.56% on the day at 0.7145.

USD remains on the back foot ahead of FOMC Minutes

The broad-based selling pressure surrounding the greenback in the early American session seems to be helping AUD/USD push higher. 

Wall Street’s main indexes opened sharply higher on Wednesday after White House Chief of Staff Mark Meadows said that they were working on standalone stimulus bills on 10 items that sides agree on. The upbeat market mood, as reflected by a 1.4% gain seen in the S&P 500 Index, weighs on the safe-haven greenback and the US Dollar Index is currently down 0.27% at 93.60.

There won’t be any macroeconomic data releases in the remainder of the day but the FOMC will release the minutes of its September meeting. 

After introducing its new average inflation target strategy and the updated forward guidance back in September, this publication is not expected to provide any fresh clues regarding the policy outlook. In a speech on Tuesday, FOMC Chairman Jerome Powell reiterated that more fiscal support was needed to have a strong and fast recovery and the minutes are likely to reinforce this message.

Technical levels to watch for