- AUD/USD struggles to make a decisive move in either direction.
- US Dollar Index stays below 90.00 on Monday.
- Wall Street’s main indexes look to open higher.
After closing the previous week in the negative territory, the AUD/USD pair opened in a quiet manner and seems to be having a difficult time making a decisive move in either direction. As of writing, the pair was down 0.08% on the day at 0.7724.
USD weakens modestly on Monday
The US Dollar Index managed to stage a rebound on Friday on the back of upbeat PMI data from the US. However, the upbeat marker mood is not allowing the USD to preserve its strength on Monday. At the moment, the DXY is down 0.15% on a daily basis at 89.90.
Currently, the S&P Futures and the Nasdaq Futures are up 0.45% and 0.6%, respectively, suggesting that risk flows are likely to continue to dominate the financial markets in the second half of the day.
Later in the session, the Federal Reserve Bank of Chicago’s National Activity Index for April will be featured in the US economic docket.
Additionally, Federal Reserve Governor Lael Brainard and Cleveland Federal Reserve President Loretta Mester will be delivering speeches. Last week, several policymakers voiced concerns over inflation and called for discussion on QE adjustments to start in the upcoming meetings. Hawkish Fed commentary is likely to help the greenback stay resilient against its rivals and limit AUD/USD’s upside.
Technical levels to watch for
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