AUD/USD edges higher to 0.7150 area after US data

• AUD/USD is posting modest gains near mid-0.7100s on Wednesday.
• US Dollar Index is staying above 94.00 in early American session.
• Data from US showed economy contracted by 31.4% in Q2.

The AUD/USD pair rose to 0.7150 in the early trading hours of the American session but seems to be having a difficult time preserving its bullish moment. As of writing, the pair was up 0.13% on the day at 0.7137.

DXY edges lower after US data

The data from the US showed on Wednesday that the real Gross Domestic Product (GDP) in the second quarter contracted by 31.4% on a yearly basis. This reading came in slightly better than the market expectation of -31.7%. Additionally, the ADP Employment Change for September arrived at +749K and surpassed analysts’ estimate of 650K.

The S&P 500 futures pared early gains after this data to reflect a positive shift in market sentiment. The US Dollar Index, on the other hand, erased a portion of its daily gains and was last seen gaining 0.17% on the day at 94.04.

ISM Chicago’s Purchasing Managers’ Index and Pending Home Sales data will be released later in the session. If these figures coming stronger than expected, Wall Street’s main indexes could gain traction and put additional weight on the greenback in the second half of the day.

On Thursday, the AiG Performance of Manufacturing Index and the Commonwealth Bank Manufacturing PMI data will be featured in the Australian economic docket. 

Technical levels to consider