AUD/USD climbs to 0.7550 area on renewed USD weakness

• AUD/USD is edging higher during the American session.
• US Dollar Index is in the negative territory near 90.50.
• Wall Street’s main indexes stage a rebound on Tuesday.

The AUD/USD pair the first half of the day moving sideways near 0.7520 but gained traction during the American trading hours. As of writing, the pair was up 0.2% on a daily basis at 0.7552.

USD selloff returns

Renewed selling pressure surrounding the greenback seems to be helping AUD/USD push higher. After staying little changed for the majority of the day around 90.70, the US Dollar Index (DXY) turned south after Wall Street’s main indexes started the day in the positive territory. At the moment, the DXY is losing 0.2% at 90.51 and the S&P 500 Index is gaining 0.6% at 3,669.

The US Food and Drug Administration’s (FDA) report that reassured Moderna’s coronavirus vaccine will be approved for emergency use later this week seems to be the primary catalyst behind the improved market sentiment on Tuesday.

Earlier in the day, the data from the US showed that Industrial Production in November rose by 0.4% and the IBD/TIPP Economic Optimism edged lower from 50 in November to 49 in December. Nevertheless, market participants showed little to no reaction to these figures.

On Wednesday, the Commonwealth Bank’s preliminary Manufacturing and Services PMI data for December from Australia will be looked upon for fresh impetus.

Technical levels to watch for