AUD/USD struggles to stage a convincing rebound, stays deep in red near 0.7620

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  • AUD/USD remains on track to close in the negative territory.
  • US Dollar Index is staying flat around 92.30.
  • Investors wait for FOMC to release the minutes of March meeting.

After dropping toward 0.7600 during the European trading hours, the AUD/USD pair recovered modestly but lost its traction, once again, around 0.7650. As of writing, the pair was down 0.57% on a daily basis at 0.7618.

DXY retreats to 92.30 area ahead of FOMC

Earlier in the day, the greenback started to gather strength as the 10-year US Treasury bond yield turned north and gained more than 1%. The US Dollar Index (DXY) rose to a daily high of 92.41 in the early American session but seems to have gone into a consolidation phase around 92.30. Investors opt-out to remain on the sidelines while waiting for the FOMC to release the minutes of its March 16-17 meeting.

Reflecting the choppy market action, Wall Street’s main indexes are virtually unchanged on the day.

The data published by the US Census Bureau showed on Wednesday that the goods and services trade deficit in February widened to $71.1 billion from $67.8 in January. This reading came in worse than analysts’ estimate for a deficit of $70.5 billion but was largely ignored by market participants. 

Previewing the FOMC’s publication, “markets anticipate that as US economic growth accelerates the Fed will reduce and eventually end its bond program,” note FXStreet Analyst Joseph Trevisani. “The FOMC minutes will be scoured for clues to the logic, timing, and size of any change to the Treasury intervention.”

There won’t be any macroeconomic data releases featured in the Australian economic docket on Thursday.

Technical levels to watch for

 

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