AUD/USD slumps to fresh multi-week lows below 0.7100

• AUD/USD selloff picked up steam in the American session.
• US Dollar Index extends rally beyond 94.00 on Wednesday.
• US PMI data showed private sectors economic activity continued to expand in September.

The AUD/USD pair came under renewed selling pressure in the American session and slumped to its lowest level since early August at 0.7089. As of writing, the pair was down 1% on the day at 0.7102.

DXY rally continues on Wednesday

The data from the US showed on Wednesday that the business activity in the private sector continued to expand at a robust pace in September. The IHS Markit’s Manufacturing PMI improved from 53.1 to 53.5 and the Services PMI edged slightly lower to 54.6 but remained well above the 50 threshold.

The US Dollar Index (DXY), which gained nearly 1% after rising decisively on Monday and Tuesday, extended its rally and touched its best level in nearly two months at 94.31. At the moment, the DYX is up 0.25% on the day at 94.20.

On the other hand, the data published by the Australian Bureau of Statistics revealed that Retail Sales in August declined by 4.2% on a monthly basis and caused the AUD to weaken against its rivals during the first half of the day.

There won’t be any other macroeconomic data releases featured in the remainder of the day the USD’s market valuation is likely to remain the primary driver of AUD/USD’s movements.

Technical levels to watch for