AUD/USD sees a cushion around 0.6800 ahead of RBA minutes

• AUD/USD is likely to pick bids around 0.6800 after the conclusion of the corrective move.
• The release of the RBA minutes will unfold the guidance for further monetary policies.
• Weak oil prices in July may barricade price pressures, however, hawkish Fed bets will remain stable.

The AUD/USD pair is juggling in a narrow range of 0.6808-0.6814 in the early Asian session.  The asset has witnessed a steep fall after failing to overstep the crucial hurdle of 0.6850 on Monday. The major is eyeing a cushion around 0.6800 as the release of the minutes from the Reserve Bank of Australia (RBA) is expected to strengthen the aussie bulls. On a broader note, the antipodean is performing stronger against the greenback and the corrective phase is expected to get concluded sooner.

The minutes from the RBA for July’s monetary policy meeting will unveil the agenda behind the interest rate elevation. RBA Governor Philip Lowe announced a consecutive rate hike by 50 basis points (bps) so as to bring the inflation rate under the desired figure. The minutes will also provide a detailed study of the economic condition of Australia. Apart from that, the viewpoint on further guidance will be of utmost importance.

Meanwhile, the US dollar index (DXY) is struggling to sustain above 107.40 after a pullback move from near 107.00 as investors are expecting that the price pressures in the US economy are near their peak levels. The consensus is backed by vulnerable oil prices in July and likely lower aggregate demand. Expectations for slippage in the overall demand will shift the raw-material prices lower and therefore, result in a sigh of relief for the inflation rate. Although the odds for a mega rate hike by the Federal Reserve (Fed) will remain stable.