Risk is back in favour in the markets after the latest FOMC minutes contained no surprises, says Saxo Bank's John Hardy. He says AUD could see a breakout as traders turn their attention to emerging markets and commodity currencies while USD consolidates.

Hardy says the minutes confirmed that the US Fed is likely to hike rates at a December 16, barring any bad data. The minutes underlined that any subsequent increases would happen at a gradual pace, which to the market appeared dovish, Hardy adds. This has seen risk-on sentiment return to market and Hardy looks at how that will impact currencies in coming days.