- AUD/USD remains on track to close in the negative territory.
- US Dollar Index pared early gains and turned flat at 93.05.
- Wall Street’s main indexes post impressive gains on Monday.
The AUD/USD pair edged lower during the first half of the day and struggled to stage a rebound during the American session with trading condition remaining thin due to the Columbus Day holiday in the US. As of writing, the pair was down 0.4% on the day at 0.7210 and was on track to snap a three-day winning streak.
Earlier in the day, the selling pressure surrounding the Chinese yuan following the People’s Bank of China’s (PBOC) decision to lower to FX risk reserve ratio to zero caused the AUD to stay on the back foot.
DXY loses traction as Wall Street rally picks up steam
On the other hand, the US Dollar Index (DXY), which closed the second straight week in the negative territory, edged higher amid cautious market mood during the first half of the day and didn’t allow AUD/USD to turn north.
In the early American session, however, the impressive performance of major equity indexes in the US made it difficult for the USD to preserve its strength. At the moment, the S&P 500 Index is at its highest level since early September at 3,541, up nearly 2% on the day, and the DXY is virtually unchanged at 93.05.
There won’t be any macroeconomic data releases from Australia during the Asian session on Tuesday and the USD’s market valuation is likely to remain the primary driver of AUD/USD’s movements.
Technical levels to watch for
Share
