AUD/USD consolidates on overnight gains amid 3% drop in iron ore futures

• AUD/USD is struggling to break above 0.7180, possibly due to losses in iron ore futures. 
• The recovery rally could gather pace if the Fed minutes, due at 19:00 GMT, sound dovish. 

AUD/USD jumped above the 50-day moving average (MA) hurdle yesterday. So far, however, the follow-through has been weak, possibly due to a drop in iron ore prices

Dalian iron ore futures ended a three-day winning streak today, falling nearly 3 percent to CNY 616 per tonne, according to Reuters. Iron ore is one of Australia's top exports. Further, a below-forecast Aussie fourth-quarter wage price index released earlier today could be capping gains in AUD/USD. 

However, the stalled recovery rally from recent lows near 0.7050 could gather pace if the Fed minutes reiterate willingness to use balance sheet as a tool if required. Last month, Fed's Powell had said that 

The central bank, at its Jan. 30 meeting, held rates steady and counseled patience on further rate hikes. Powell also said in his press conference then that the Fed would be flexible about further reducing its $4 trillion balance sheet if warranted. 

Technical Levels