- AUD/USD remains on track to close the day in the positive territory.
- Focus shifts to Consumer Confidence data from Australia.
- US Dollar Index remains depressed below 90.00 in American session.
The AUD/USD pair staged a technical correction to 0.7780 but didn’t have a difficult time regaining its traction in the late American session. As of writing, the pair was trading at 0.7800, gaining 0.46% on a daily basis.
DXY looks to close below 90.00
The broad-based USD weakness allowed AUD/USD to push higher on Tuesday. The greenback struggled to attract investors in the risk-positive market environment and the US Dollar Index (DXY) dropped to its lowest level since late February at 89.69.
Although the DXY managed to pull away from lows, it remains on track to post losses for the fourth straight trading day and was last seen losing 0.45% at 89.78.
In the early trading hours of the Asian session on Wednesday, the Westpac Consumer Confidence and Leading Index from Australia will be looked upon for fresh impetus. The first quarter Wage Price Index will be featured in the Australian economic docket as well.
In the meantime, the Reserve Bank of Australia (RBA) offered no surprises in the minutes of its May meeting and failed to trigger a noticeable market reaction. The RBA reiterated that it is willing to extend bond-buying if needed and added that it will not hike rates until inflation is sustainably in the 2-3% target band. “Conditions for a rate rise are considered unlikely until 2024 at the earliest,” the RBA noted.
Technical levels to watch for
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