AUD/USD hovering around 0.7560 ahead of FOMC minutes

AUD/USD rose sharply during the Asian session but then pulled back trimming gains. During the last hours, it has been hovering around 0.7560 ahead of the release of the FOMC minutes from the latest Fed meeting. 

Investors will watch closely the minutes in order to gauge the timing of next Fed rate hike. Today the CME Group's FedWatch Tool was pointing to over a 60% probability of such an action in December. 

Capped by 0.7600

During the Asian session, the US dollar retreated and also the Aussie gained momentum boosted by Australian Consumer Confidence data. The pair climbed from 3-week lows near 0.7530 and peaked at 0.7592. Then it turned to the downside. So far the area around the 20-hour moving average that stands around 0.7550/60, capped the decline. The recovery remains limited and the price still holds near weekly lows. 

Yesterday’s decline in the AUD/USD pair pushed the price back below the 20-day moving average, and also confirmed the bearish bias that has been in place since late September.