AUD/USD stabilizes above 0.7100 ahead of FOMC minutes

• AUD/USD is looking to recapture a fortnight high at 0.7127 as investors await FOMC minutes.
• A likely underperformance from US Durable Goods Orders may diminish the appeal of the greenback.
• The Manufacturing PMI data of aussie remained vulnerable while in line numbers are displayed by the US.

The AUD/USD pair has surpassed 0.7110 as investors are awaiting the release of the Federal Open Market Committee (FOMC) minutes on Wednesday. The pair struggled to surpass 0.7120 on Tuesday and is attempting to elevate itself above the fortnight high at 0.7127.

The asset prices on Tuesday were mostly dictated by the global Purchase Manager Index (PMI) numbers. The antipodean reported the Manufacturing PMI at 55.3, significantly lower than the estimates of 57.8 and the prior print of 58.8 while Services PMI landed at 53, higher than the forecasts of 52.2 but lower than the prior release of 53.5.

While the US Manufacturing PMI remained in line with the estimates of 57.5 and Service PMI tumbled to 53.5 against the expectation of 55.2.

Going forward, the market participants will focus on the release of the FOMC minutes. The FOMC minutes will dictate the ideology of Federal Reserve (Fed) policymakers behind the announcement of 50 basis points (bps) interest rate hike. Also, the guidance on the upcoming monetary policy meetings will be meaningful to watch.

Apart from the FOMC minutes, the US Durable Goods data hold significant importance. The US Census Bureau is expected to report the monthly Durable Goods Orders at 0.6% against the prior print of 1.1%. Also, the core Durable Goods Orders that exclude defense goods are expected to land at 0% vs. 1.4% reported earlier.