AUD/USD drops below 0.7500 as USD gathers strength ahead of FOMC Minutes

• AUD/USD reversed its direction in early American session.
• US Dollar Index extends rally to fresh three-month highs.
• FOMC will release the minutes of its June meeting at 1800 GMT.

After rising to a daily high of 0.7534 earlier in the day, the AUD/USD pair reversed its direction and was last seen trading at 0.7467, where it was down 0.4% on a daily basis. 

DXY closes in on 93.00

Similar to Tuesday's market action, the USD gathered strength as American traders entered the market. The US Dollar Index (DXY), which spent the first half of the day moving sideways near 92.50, is currently trading at its highest level since early April at 92.83, rising 0.3% on a daily basis.

The only data from the US revealed on Wednesday that JOLTS Job Openings were little changed at 9.2 million in May. Meanwhile, the S&P 500 and the Dow Jones Industrial Average indexes are down 0.1% and 0.3%, respectively, while the Nasdaq Composite is flat on the day at 14,790.

Later in the session, the FOMC will release the minutes of its June meeting and investors may be pricing the prospects for this publication to confirm the hawkish policy tilt. 

Previewing this release, "Fed minutes of June 15-16 FOMC may contain clues for taper policy," said FXStreet senior analyst Joseph Trevisani. "Suggestions of higher US rates will drive the dollar and Treasury yields higher."

FOMC Minutes June Preview: A view of the Jackson Hole agenda.

Technical levels to watch for