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  • AUD/USD edges higher around intraday top despite weaker-than-prior Aussie data.
  • Australia’s Westpac Leading Index dropped below 0.40% to 0.20% MoM in April.
  • Fears of snap lockdown in Victoria return with a jump in local infections, US removes Xiaomi from blacklist.
  • Fedspeak can offer intermediate moves ahead of Friday’s key US Core PCE Price Index.

AUD/USD seesaws around the intraday top of 0.7760, up 0.07% by the press time of early Wednesday. In doing so, the Aussie pair shrugs off Australia’s Westpac Leading Index data amid the upbeat market sentiment.

Westpac Leading Index dropped below 0.45% prior to 0.20% MoM in April. The data fails to portray the optimism among the Aussie traders and should have weighed on the AUD/USD prices. However, the quote remains mildly bid following the release, mainly due to the sentiment favoring catalysts.

Earlier in the day, fears of the fresh activity restrictions in Victoria mounted after the state reported 10 new local transmissions of the coronavirus (COVID-19). Also challenging the market sentiment could be the chatters over easing growth of China, Australia’s biggest customer.

On the contrary, the US Federal Reserve (Fed) policymakers’ rejection of inflation fears and tapering joins the American removal of Xiaomi from the blacklist to portray the risk-on mood.

Against this backdrop, S&P 500 Futures rise 0.30% intraday and gold remains on the front foot around $1,900, the highest since early January. On the contrary, the US dollar index (DXY) remains on the back foot for the third consecutive day while the US 10-year Treasury yields wobble around 1.56% by the press time.

Looking forward, Fed comments can keep AUD/USD traders busy ahead of the crucial US Core Personal Consumption Expenditure-Price Index, Fed’s preferred gauge of inflation. Meanwhile, the US Durable Goods Orders and second reading of US GDP may also entertain the pair traders. It’s worth mentioning that the US Treasury moves should be watched closely for fresh impulse.

Technical analysis

Clearance of a two-week-old descending trend line, around 0.7750, keeps short-term buyers hopeful. Even so, AUD/USD needs to break the 0.7700-7820 trading range to portray any decisive moves.