AUD/USD inches higher above 0.7360 as the RBA releases April’s monetary policy minutes

• AUD/USD has bounced back sharply from 0.7350 on the release of the RBA April’s minutes.
• The RBA kept its interest rates unchanged in April and dictated neutral guidance.
• A minor correction in the US Treasury yields has pressured the DXY.

The AUD/USD pair has rebounded firmly after hitting a low of 0.7350 in the Tokyo session as the Reserve Bank of Australia (RBA) has released the minutes of the monetary policy announced in the first week of April.

Earlier, the announcements made in April’s monetary policy brought an intense sell-off in the asset as RBA chair Philip Lowe adopted a neutral stance. An unchanged interest rate policy was announced by the RBA along with a wait and watch guidance. The RBA believes that current price pressures are still not compelling for a rate hike sooner.

Last week’s release of a hike in the Unemployment Rate by the Australian Bureau of Statistics is not demanding any rate hike sooner. The Unemployment rate landed at 4% against the estimate of 3.9%. Also, the vulnerable Employment Change trimmed the chances of a rate hike by the RBA. The Australian administration added only 17.9k jobs against the consensus of 40k.

Meanwhile, the US dollar index (DXY) is facing some long liquidation on its way to 101.00. The DXY is experiencing minor resistance amid a slight correction in the US Treasury yields. The 10-year US Treasury yields have tumbled to 8.5% after printing a fresh three-year high of 2.88%.