FxWirePro: AUD/USD pauses three-day rally, market await Fed minutes

• AUD/USD came under mild pressure on Wednesday as investors awaited central bank updates for indications on the direction of monetary policy.

• Later on Wednesday, the US central bank will release minutes from its September 15-16 meeting, when policymakers raised interest rates to tackle inflation.

• Meanwhile, RBA’s October 13 meeting minutes will be the next major focus and are expected to sound hawkish, reflecting the board’s unanimous decision to lift interest rates.

• Markets will look for clues on whether policymakers considered the hike enough, their view of the risks and the prospect of another rate move in the months ahead.

• September employment data next week could provide fresh clues on the outlook, following the unexpected jump in the unemployment rate to 4.6% in August, a five-year high.

• Immediate resistance is located at 0.6991(50%fib), any close above will push the pair towards 0.7007(Higher BB).

• Support is seen at 0.6963(SMA20) and break below could take the pair towards 0.6953(38.2%fib ).

 Recommendation: Good to sell around 0.6980, with stop loss of 0.7050 and target price of 0.6900