- AUD/USD trades with modest losses in early American session.
- US Dollar Index stays in the positive territory above 91.30.
- Wall Street’s main indexes look to open slightly lower.
The AUD/USD pair closed in the negative territory on Tuesday and stays on the back foot on Wednesday amid modest USD strength. As of writing, the pair was down 0.5% on a daily basis at 0.7710.
DXY pushes higher ahead of Wall Street’s opening bell
The US Dollar Index (DXY), which managed to stage a decisive recovery amid slumping US stocks on Tuesday, continues to edge higher on Wednesday and allows bearish pressure on AUD/USD to remain intact.
There won’t be any macroeconomic data releases featured in the US economic docket and investors will keep a close eye on the performance of Wall Street’s main indexes. Currently, the S&P 500 Futures are down 0.2% and the greenback is likely to preserve its strength if the market mood stays sour during the American session.
On the other hand, the data from Australia revealed that Retail Sales in March rose by 1.4% on a monthly basis following February’s contraction of 0.8%. Although this reading came in higher than the market expectation for an increase of 1%, it failed to help the AUD find demand.
On Thursday, the National Australia Bank’s Business Confidence Index for the first quarter will be looked upon for fresh impetus.
Technical levels to watch for
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