AUD/USD climbed an additional 20 pips in the aftermath of the FOMC minutes to boost the daily gain to a half-cent and crest above the 0.7200 level.
The minutes didn't offer any clear indications that the Fed is seriously considering a 50 bps hike in March. That said, the meeting was before the latest high inflation reading.
The market is taking it at face value though and the implied probability of a 50 bps hike has drifted lower while US equities have rebounded from solid losses to gains.
In terms of AUD, this stands to be the best close since January 20. If the market shifts more decisively to a 25 basis point view, then we will see an extension of this kind of price action.
