AUD/USD consolidates daily losses near 0.7400 ahead of US data

• US Dollar Index struggles to extend higher above 94.
• Wall Street set to open higher in pre-market trading.
• Home price index and Richmond Fed Manufacturing Index from the U.S. will be released next.

The AUD/USD pair is trading in a 30-pip range on Tuesday and is struggling to determine its next short-term direction. As of writing, the pair was trading at 0.7402, losing 0.18% on the day.

Despite the broad-based selling pressure witnessed on the greenback, the pair closed the first day of the week with a 30-pip loss as the risk-sensitive aussie  failed to find demand in the risk-off environment.  “All 15 market indicators monitored by FXStreet are now flagging risk-off dominance. Most notable behaviours have been seen in the VIX which is now challenging the 25 May swing high, and base metal prices which are especially sensitive to economic threats,” writes FXStreet’s research expert Gonçalo Moreira.

Later in the session, S&P/Case-Shiller Home Price Index and the Richmond Fed Manufacturing Index will be released from the United States. Ahead of the data, the US Dollar Index is sticking to its small daily gains at 94.15. However, markets are unlikely to react to the data as investors will remain focused on the trade-war headlines.

The U.S. President Donald Trump recently tweeted out that they were finishing their study of tariffs to be imposed on European car tariffs.

Technical outlook

0.7500/10 (psychological level/20-DMA) area stays as a critical resistance on the upside ahead of 0.7550 (May 13 high) and 0.7625 (100-DMA). Supports,  meanwhile, are located at 0.7390/80 (daily low/Jun. 22 low), 0.7340 (Jun. 21 low) and 0.7300 (psychological level).