- AUD/USD is trading in a tight range for the second straight day.
- US Dollar Index holds above 90.00 on Tuesday.
- Goods Trade Balance and JOLTS Job Openings data from US coming up next.
The AUD/USD pair closed the first trading day of the week in the positive territory but struggled to preserve its bullish momentum. As of writing, the pair was down 0.15% on a daily basis at 0.7740.
DXY remains afloat above 90.00
Earlier in the day, the data from Australia showed the National Australia Bank’s Business Confidence Index declined to 20 in May from 23 in April. On a positive note, the Business Conditions Index improved to 37 from 32. These mixed readings failed to trigger a noticeable market reaction.
Meanwhile, with the S&P Futures and the Dow Futures losing 0.3% and 0.45%, respectively, the greenback is finding demand during the European trading hours. At the moment, the US Dollar Index is up 0.15% on the day at 90.12 and making it difficult for AUD/USD to gain traction.
Later in the session, Goods Trade Balance and JOLT Job Openings data will be featured in the US economic docket. Nevertheless, the risk perception is likely to continue to impact the USD’s valuation rather than these data. On Wednesday, the Westpac Consumer Confidence will be released from Australia.
Meanwhile, the benchmark 10-year US Treasury bond yield is down 1% on the day at 1.552%, limiting the DXY’s upside for the time being.
Technical levels to watch for
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