- AUD/USD rose to a daily high of 0.7592 during the American session.
- US Dollar Index looks to snap three-day winning streak.
- Announcement of a Brexit deal could weigh on USD.
The AUD/USD pair extended its daily rally during the American trading hours and touched a daily high of 0.7592 before going into a consolidation phase. As of writing, the pair was up 0.85% on the day at 0.7585.
USD struggles to find demand on Brexit hopes
Although the initial reaction to the macroeconomic data releases from the US helped the greenback gather strength, the US Dollar Index (DXY) turned south after the latest headlines on Brexit pointed out to a deal before Christmas. The impressive upsurge witnessed in the GBP/USD pair dragged the DXY to a daily low of 90.15. At the moment, the index, which closed the previous three trading days in the positive territory, is down 0.4% on the day at 90.28.
The US Bureau of Economic Analysis reported on Wednesday that Personal Income and Personal Spending in the US declined by 1.1% and 0.4% in November, respectively. However, other data revealed Durable Goods Orders increased by 0.9%, compared to analysts’ estimate of 0.6%, and the weekly Initial Jobless Claims declined to 803,000 from 892,000.
Investors will keep a close eye on developments surrounding the EU-UK trade negotiations in the remainder of the day. Several news outlets say that a deal could be announced after 1900 GMT and thin trading conditions could trigger sharp fluctuations in USD denominated pairs.
Technical levels to watch for
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