AUD/USD weakens below 0.6750 as China's stimulus update disappoints markets

• AUD/USD edges lower to around 0.6740 in Wednesday's Asian session. 
• Firmer USD and lack of more Chinese major stimulus weigh on the pair. 
• The FOMC Minutes will be closely watched on Wednesday. 

The AUD/USD pair extends its decline to near 0.6740 during the Asian session on Wednesday. The stronger US Dollar (USD) and disappointment over additional China stimulus measures continue to undermine the pair.

According to the RBA September Meeting Minutes released on Tuesday, the board members discussed scenarios for lowering and raising interest rates in the future. RBI Deputy Governor Andrew Hauser said the Australian central bank will act when inflation stops being high and sticky, adding that lowering inflation is a significant task and they are not completed yet.

Furthermore, the comments from the National Development and Reform Commission press conference exert some selling pressure on the China-proxy Australian Dollar (AUD). Chinese officials disappoint traders without more major stimulus. 

On the other hand, traders reduce their bets on the Federal Reserve (Fed) rate cut in September, which lifts the USD broadly. According to the CME FedWatch Tool, the markets have priced in nearly an 87% chance of 25 basis points (bps) Fed rate cuts in November, up from 31.1% last week. 

Fed Vice Chair Philip Jefferson said on Tuesday the US central bank's 50 bps interest-rate cut in September was aimed at keeping the labor market strong even as inflation continues to ease. 

Looking ahead, investors await the Federal Open Market Committee (FOMC) Minutes. The attention will shift to the US Consumer Price Index (CPI) for September on Thursday. However, if the inflation report surprisingly shows a hotter than expected outcome, it could support the Aussie.