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AUD/USD drops into the negative territory below 0.7750 on USD recovery

  • AUD/USD reversed its direction after climbing toward 0.7800.
  • US Dollar Index rebounds to 90.00 during the American session.
  • Focus shifts to Thursday’s high-tier data releases from US.

The AUD/USD pair rose toward 0.7800 during the Asian trading hours but came under modest bearish pressure in the second half of the day. As of writing, the pair was down 0.08% on the day at 0.7743.

DXY rebounds to 90.00 area on Wednesday

Earlier in the day, the sharp upsurge witnessed in the positively-correlated NZD/USD pair provided a boost to AUD/USD. The Reserve Bank of New Zealand’s hawkish tone in its policy statement helped the kiwi outperform its rivals and NZD/USD remains on track to close the day with a 1% gain.

Nevertheless, the steady recovery seen in the US Dollar Index forced AUD/USD to turn south during the American trading hours. The DXY is currently up 0.35% at 90.00 and looks to snap a two-day losing streak.  

In the absence of significant fundamental drivers, the cautious market mood seems to be helping the greenback find some demand.

On Thursday, investors will keep a close eye on high-tier macroeconomic data releases from the US. The US Bureau of Economic Analysis will release its second estimate of the first-quarter GDP growth and the Census Bureau will publish April Durable Goods Orders. Pending Home Sales and Initial Jobless Claims data will be featured in the US economic docket as well.  

Technical levels to watch for

 

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