AUD/USD corrects to near 0.6680 as investors await FOMC minutes and US Employment

• AUD/USD has dropped to near 0.6680 as the focus shifts to the US labor market and FOMC minutes.
• Caixin Services PMI has sharply dropped to 53.9 from the former release of 57.1.
• Investors are hoping that FOMC minutes could provide confident cues that the Fed would raise interest rates two times by year-end.

AUD/USD has registered a corrective move to near 0.6680 in the Asian session. The Aussie asset has faced selling pressure as investors have turned cautious ahead of the release of the Federal Open Market Committee (FOMC) minutes and the United States labor market data.

S&P500 futures are showing marginal losses as the weekly session has shortened due to the holiday on Tuesday on account of Independence Day. A volatile action is anticipated in US markets on Wednesday as investors would wrap up their positions.

The US Dollar Index (DXY) is comfortable balancing above the crucial resistance of 103.00 as investors are hoping that FOMC minutes could provide confident cues that Federal Reserve (Fed) chair Jerome Powell would raise interest rates two times by year-end.

Contrary to that, the money market is anticipating only one interest rate hike further as US economic outlook is not delivering promising signs.

Apart from the FOMC minutes, investors would keenly focus on the US Automatic Data Processing (ADP) Employment Change data (June). The ADP report is expected to show a decline in the Employment Change to 180K for June vs. the former release of 278K.

Meanwhile, the Australian Dollar has sensed selling pressure due to weak Caixin Services PMI data. The economic data has sharply dropped to 53.9 from the former release of 57.1. It seems that the Chinese economy is struggling to recover despite meaningful measures from the Chinese administration and the People’s Bank of China (PBoC).

It is worth noting that Australia is the leading trading partner of China and a decline in Chinese services could impact the Australian Dollar.