The Australian dollar recovered from intra-week lows during Asian trading on Wednesday as investors positioned ahead of the Federal Reserve’s latest meeting minutes, due later today. The AUD/USD pair was trading near 0.65, with the limited rebound reflecting caution before the release. Traders will examine the minutes for signals on inflation, employment and the timing of potential US rate cuts. A dovish tone could weaken the US dollar and support the AUD, while hawkish guidance could push the currency pair back toward recent lows. Australia’s Reserve Bank has kept its cash rate at 4.35% since November 2023, while Governor Michele Bullock has stressed the need for inflation to return sustainably to the 2-3% target. Expectations for the RBA’s next move remain divided, with some economists forecasting a cut later this year and others warning that persistent services inflation could keep rates elevated. Resilient labor-market conditions have contrasted with softer consumer confidence and retail sales, leaving the AUD sensitive to global risk sentiment and US monetary-policy expectations. The AUD/USD pair is near its 50-day moving average, with support around 0.6450 and resistance at 0.6560. The Fed minutes are also expected to influence expectations for the Fed’s next move in March, affecting global liquidity and risk appetite. The currency’s uptick reflects pre-event positioning rather than a decisive change in market dynamics, and the AUD remains vulnerable to US rate expectations and global risk sentiment.