AUD/USD to display oscillation around 0.6800 ahead of Fed minutes

• AUD/USD is expected to turn sideways after a rebound from 0.6762.
• Investors are on the sidelines ahead of the release of the Fed minutes.
• The aussie bulls failed to capitalize on a 50 bps rate hike by the RBA.

The AUD/USD pair displayed a responsive buying action after hitting a low of 0.6762 in the late New York session. The responsive buying action came after the aussie bears re-tested the weekly lows at 0.6764, recorded on July 1. Usually, this kind of action results in a sideways move or a mild correction in the counter. Therefore, the asset will keep auctioning around 0.6800 ahead.

Also, the forward release of the Federal Open Market Committee (FOMC) minutes will keep investors on the sidelines. The release of the FOMC minutes will provide a detailed clarification on the prior rate hike announcement by the Federal Reserve (Fed). Fed chair Jerome Powell in June monetary policy announced a rate hike by 75 basis points (bps).

Adding to the clarification on the rate hike announcement, the FOMC minutes will dictate the economic indicators to understand the growth prospects of the US economy.

On the aussie front, the aussie bulls failed to capitalize on the 50 bps rate hike announcement by the Reserve Bank of Australia (RBA) on Tuesday. RBA Governor Philip Lowe elevated the Official Cash Rate (OCR) to 1.35%. No doubt, the RBA is aggressively working on containing its price pressures, which were recorded at 5.1% in the first quarter of CY2022. This is the consecutive 50 bps rate hike announcement by the RBA.