AUD/USD pares daily losses, trades around 0.7620 as focus shifts to US data

• AUD/USD slumped to fresh multi-week lows on Wednesday.
• US Dollar Index stays relatively quiet around 92.50.
• Investors await Durable Goods Orders and PMI data from US.

The AUD/USD pair dropped to its lowest level since early February at 0.7584 on Wednesday but managed to stage a rebound ahead of the American session. As of writing, the pair was unchanged on the day at 0.7622.

Focus shifts to US data

Earlier in the day, the USD capitalized on safe-haven flows and continued to gather strength against its rivals with the US Dollar Index advancing to its best level since November 24 at 92.60. Additionally, the sharp decline witnessed in the NZD/USD pair weighed on the positive-correlated AUD/USD as well.

The Commonwealth Bank Manufacturing PMI and Services PMI figures showed that the business activity in Australia’s private sector expanded at a stronger pace in March than it did in February. However, the AUD failed to take advantage of the upbeat data.

Later in the session, the IHS Markit will release the preliminary Manufacturing and Services PMI reports for the US. Furthermore, February Durable Goods Orders will be featured in the US economic docket as well. Ahead of these data, the US Dollar Index is clinging to small daily gains at 92.45.

Meanwhile, the S&P 500 Futures are up 0.5% on the day, suggesting that the greenback could struggle to gather additional strength if Wall Street’s main indexes start the day decisively higher.

There won’t any significant macroeconomic data releases from Australia on Thursday.

Technical levels to watch for