After spending the Asian session in a relatively tight range below 0.7800, the AUD/USD pair lost its footing during the European trading hours and dropped to a daily low of 0.7732. As of writing, the pair was losing 0.58% on a daily basis at 0.7745. The broad-based USD strength is weighing on AUD/USD on Wednesday. The risk-averse market environment, as reflected by a 1% decline in the S&P Futures, is helping the safe-haven greenback outperform its rivals. At the moment, the US Dollar Index is up 0.2% on the day at 89.98.

Earlier in the day, the data from Australia showed that the Westpac Consumer Confidence Index in May dropped to -4.8% from 6.2% in April. On a positive note, the Wage Price Index in the first quarter rose to 1.5% and came in higher than the market expectation of 1.4%. There won't be any high-tier macroeconomic data releases featured in the US economic docket on Wednesday. At 1800 GMT, the US Federal Reserve will release the minutes of its April meeting. Meanwhile, investors will pay close attention to the performance of US stocks. In case Wall Street's main indexes suffer big losses after the opening bell, the USD could continue to gather strength and weigh on AUD/USD.