- AUD/USD rises into the positive territory during the American session.
- US Dollar Index drops into the negative territory near 89.70.
- Upbeat data releases from US failed to help USD gather strength.
The AUD/USD dropped to 0.7730 area during the European trading hours but reversed its direction with the greenback coming under renewed selling pressure in the American session. As of writing, the pair was up 0.27% on a daily basis at 0.7755.
DXY edges lower after US data
The data from the US showed that the economic activity in the manufacturing sector continued to expand at a robust pace in May. The IHS Markit’s Manufacturing PMI rose to 62.1 in May from 60.5 and the ISM’s Manufacturing PMI improved to 61.2 from 60.7 in the same period.
The upbeat US data allowed Wall Street’s main indexes to start the day decisively higher and made it difficult for the greenback to find demand. At the moment, the US Dollar Index (DXY) is losing 0.15% on the day at 89.70. Nevertheless, the S&P 500 Index turned flat on the day in the last minutes, helping the DXY limit its downside for the time being.
Earlier in the day, the Reserve Bank of Australia announced that it left its monetary policy settings unchanged following the June meeting. In its policy statement, the RBA noted that it will assess possible changes to future bond purchases at its July meeting but the impact of this announcement on the AUD’s market valuation remained short-lived.
On Wednesday, the Australian Bureau of Statistics will publish the first quarter Gross Domestic Product data.
Technical levels to watch for
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