AUD/USD erases daily gains ahead of FOMC minutes

Following yesterday's heavy losses, the AUD/USD pair was able to make a technical correction to 0.7587 during the European session before coming back under selling pressure as the private sector employment growth in the United States came in above expectations.

The US Dollar Index fluctuated after the release of the data. Although the private sector jobs in March increased by 263,000 (vs. 187,000 expected), the February figure was revised down to 245,000 from 298,000, triggering some mixed reactions. However, the positive reading is likely to ramp up the expectations for NFP on Friday. The US Dollar Index quickly leaped to 100.54 before coming back down to 100.40 area. Having found support there, the index once again rose above 100.50.

• Fed's Tarullo on CNBC: ADP another indicator of economic growth - Reuters

Now the pair is looking ahead to FOMC minutes for fresh impetus. Fed's message on the pace of tightening could help the greenback set a near-term direction as the US Dollar Index has been moving essentially sideways in a tight range since the start of the week.

• FOMC minutes in the limelight – BBH

Technical outlook

The pair faces the first hurdle at 0.7600 (psychological level) followed by 0.7640 (20-DMA/50-DMA) and 0.7680 (Mar. 30 high). On the downside, 0.7530 (100-DMA), 0.7490 (Mar. 9 low) and 0.7455 (Jan. 16 low) could be seen as near-term supports.