- AUD/USD clings to modest daily gains, stays below 0.7800.
- US Dollar Index fluctuates in a tight range around 91.00.
- Safe-haven flows could dominate financial markets in American session.
The AUD/USD pair managed to build on Monday’s gains and touched its highest level in a month at 0.7816 on Tuesday. However, the AUD struggled to preserve its bullish momentum amid a negative shift witnessed in market sentiment and retraced a portion of its daily upside. As of writing, the pair was moving sideways around 0.770, clinging to modest daily gains.
DXY posts small gains in early American session
Earlier in the day, the persistent selling pressure surrounding the USD allowed AUD/USD to continue to push higher. However, with the S&P 500 Futures turning south, the greenback started to show resilience against its rivals. At the moment, the US Dollar Index (DXY) is up 0.07% on the day at 91.15.
In case Wall Street’s main indexes fall sharply after the opening bell, safe-haven flows could weigh on AUD/USD in the second half of the day.
On the other hand, the Reserve Bank of Australia’s (RBA) April Meeting Minutes offered no surprises with regards to the policy outlook. The RBA reiterated that it will not raise the policy rate until actual inflation is sustainably in the 2-3% target range. “The Board is prepared to undertake further bond purchases, beyond the AUD200 billions announced, if it would assist with progress towards its goals,” the statement further read but failed to trigger a noticeable reaction in AUD/USD.
There won’t any macroeconomic data releases featured in the US economic docket in the remainder of the day and the risk perception is likely to remain the primary driver of AUD/USD’s movements.
Technical levels to watch for
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