AUD/USD struggles to hold above 0.7200 as USD gathers strength

• AUD/USD rose to a fresh daily high of 0.7211 but lost its traction.
• US Dollar Index edges higher above 93.00 ahead of US data.
• Durable Goods Orders in US is expected to rise by 4.3% in July.

The AUD/USD pair climbed to a daily high of 0.7211 during the European session but lost its momentum as the USD started to gather strength ahead of macroeconomic data releases from the US. As of writing, the pair was up 0.08% on the day at 0.7200.

DXY turns north after retreating to 93.00 area

In the absence of significant fundamental drivers, the greenback continues to find demand on the back of surging US Treasury bond yields. The 10-year T-bond yield gained nearly 8% in the first two days of the week and extended its rally to a fresh 10-day high of 0.716% on Wednesday. At the moment, the US Dollar Index is up 0.22% on the day at 93.21 following a retreat to 93.00 area earlier in the day.

In the early American session, the Durable Goods Orders, which is expected to come in at +4.3% on a monthly basis in July, will be looked upon for fresh impetus.

During the Asian trading hours on Thursday, Private Capital Expenditures for the second quarter will be the only data featured in the Australian economic docket. 

More importantly, market participants will wait for FOMC Chairman Jerome Powell to deliver his opening statement on the Jackson Hole Symposium at 1410 GMT on Thursday. Powell is expected to talk about possible changes to forward guidance or policy outlook with the FOMC having completed its framework review.

Technical levels to watch for