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  • US Dollar Index clings to daily gains near 97.80.
  • Coming up: CB Consumer Confidence Index from the U.S.

After closing the previous week above the 0.69 handle, the AUD/USD pair hasn’t yet been able to make a decisive move in either direction this week. As of writing, the pair was up 0.12% on a daily basis at 0.6925, fluctuating in a 15-pip daily range.

In the absence of macroeconomic data releases from Australia and new developments surrounding the U.S.-China trade conflict, the AUD struggled to find a significant catalyst.  

Just recently,  Hu Xijin, editor-in-chief of the Global Times, tweeted out that China was seriously considering restricting rare exports to the U.S. If that turns out to be true, we could witness a further escalation in the trade war and see antipodeans such as the AUD and the NZD lose strength against its rivals.

On the other hand, the US Dollar Index, which stayed calm on Monday due to the Memorial Day holiday in the U.S., rose modestly today but this move seemed to be a technical reaction to the sharp drop witnessed in the second half of the previous week. The first data from the U.S. today showed that the S&P/Case-Shiller Home Price Index rose 2.7% on a yearly basis in March to come above the market expectation of 2.6% but was largely ignored by the market participants.

Later in the session, the Conference Board’s Consumer Confidence Index will be looked upon for fresh impetus. Ahead of that data, the DXY was posting small gains near 97.80.

Technical levels to watch for