Australian Dollar ticks up from intra-week lows with all eyes on Fed minutes

The Australian Dollar (AUD) recovered from intra-week lows against the US Dollar (USD) on Friday, but the daily chart remains negative. The AUD/USD pair was unable to regain a previous support level above 0.7080, having found support at the 0.7065 area earlier in the day. Traders are closely watching the release of the minutes from the Federal Reserve's July meeting, as they could provide further guidance on the bank's near-term plans.

Analysts at ING suggest that hawkish references in the minutes could marginally strengthen the dollar, but they do not expect the minutes to be a game-changer. Instead, they believe that subsequent CPI and jobs data, along with the closing of the Jackson Hole symposium, will have a more significant impact on the Federal Reserve's decision to raise interest rates in September.

The Australian Dollar is pressured by growing uncertainty surrounding the Middle East conflict and higher Oil prices. Despite this, AUD dips are expected to remain limited due to Australia's attractive carry and its strategic exposure to commodities, including energy, AI, and defense.