- AUD/USD extended the rebound from the 0.7700 area, trims Tuesday’s losses.
- DXY fails to hold onto positive ground, drops toward 91.00.
- An improvement in market sentiment boosted the Aussie.
The AUD/USD recovered sharply from weekly lows, reaching a fresh daily high at 0.7762 during the American session. Earlier, the pair bottomed at 0.7698, the lowest level in a week.
A weaker US dollar across the board pushed AUD/USD to the upside. The greenback weakened amid rising stocks. The US Dollar Index (DXY) failed to hold to gains and was moving toward 91.00.
The improvement in market sentiment in Wall Street was a key driver for the pair. The Dow Jones gains 0.55% and the Nasdaq 0.61%. US yields moved sideways on Wednesday, the 10-year stands around 1.56%. Gold prices jumped, approaching $1800.
No economic data was released in the US on Wednesday. On Thursday, in Australia, the National Australian Bank’s Business Confidence index is due and in the US, Existing Home Sales and Jobless Claims.
The 0.7700 area becomes a key support
The AUD/USD again four support around 0.7700. A consolidation below that level would clear the way to more losses for the aussie. The next support stands at 0.7670/75. On the upside, the pair faces a resistance currently at 0.7750. Above the next level to watch is 0.7780, with a break higher strengthening the bullish outlook.