AUD/USD struggles to sustain above 0.6720 amid risk-off mood ahead of FOMC minutes

• AUD/USD is struggling to remain above the immediate hurdle of 0.6720 as investors await FOMC minutes.
• Higher wage inflation could be a roadblock for the Fed in achieving a 2% inflation rate.
• The Australian Dollar is failing to capitalize on better-than-projected Caixin Manufacturing PMI data.

The AUD/USD pair is facing pressure in sustaining above the immediate resistance of 0.6720 in the Asian session. The Aussie asset is expected to re-test the round-level support of 0.6700 as the risk-aversion theme is impacting the Australian Dollar.

Bearish settlement in S&P500 on Tuesday and subdued performance in the 500-United States stock basket on a broader note are highlighting caution in the sentiment of the market participants. The US Dollar Index (DXY) shifted into a bullish trajectory on Tuesday after defending the 103.00 support with sheer strength. Contrary, the demand for US government bonds improved, therefore, 10-year treasury yields dropped to 3.76%.