• AUD/USD has witnessed fresh demand after dropping to near 0.6200.
• The risk appetite has emerged as S&P500 has rebounded after a sell-off on Friday.
• RBA’s minutes will provide a detailed view of announcing a 25 bps rate hike.

The AUD/USD pair has bounced marginally after building a base around the critical support of 0.6200 in the early Tokyo session. The asset has picked bids after a north-side break of a compact rangebound structure in a 0.6195-0.6210 range as the risk appetite theme has fetched the spotlight.

A rebound in S&P500 in the early trade after a bearish Friday has raised a sense of hope in the risk-perceived currencies. Meanwhile, the US dollar index (DXY) is attempting to rebound after dropping to near 113.10. However, the index will keep facing pressure amid the emergence of the risk-on profile.

The DXY is not getting traction despite the soaring bets for a 75 basis point (bps) rate hike by the Federal Reserve (Fed). As per the CME FedWatch tool, the chances of an increment in the interest rates by 75 bps stand at 99.4%.

On the Aussie front, investors are awaiting the release of the Reserve Bank of Australia (RBA) minutes for October’s monetary policy. This will provide a detailed view of the reasoning behind the slowdown of the pace of the interest rate hike by the central bank. It is worth noting that RBA Governor Philip Lowe announced a 25 bps rate hike, and suspended the 50 bps rate hike movement, to carry the motive of maintaining economic prospects along with the agenda of bringing price stability.

Apart from that, Thursday’s Aussie employment data will remain in focus. As per the projections, the Employment Change is seen lower at 25k against the prior print of 33.5k. While the Employment Rate is seen as stable at 3.5%. A decline in additions in payrolls could trigger volatility for the aussie bulls.