- The US Dollar Index clings to small gains above 98.
- AUD stays resilient despite the ongoing trade conflict between the U.S. and China.
- Coming up: Housing data from Australia.
For the third straight day this week, the AUD/USD pair stays directionless as it fluctuates in a very narrow range. As of writing, the pair was virtually unchanged both on the daily and weekly charts at 0.6923.
Although the latest headlines suggest that neither China or the U.S. is willing to take a step back in the trade conflict, antipodeans seem to be staying relatively resilient against the greenback. Moreover, the fact that there were no macroeconomic data releases from Australia so far this week allowed investors to essentially ignore the AUD, which came under pressure last week on expectations of the Reserve Bank of Australia cutting its policy rate in June in response to disappointing employment data.
On the other hand, the US Dollar Index continues to recover the losses it suffered in the second half of the previous week. However, the DXY’s rally seems to be supported by the greenback’s upbeat performance against its major European rivals that have been having a tough time finding demand amid political uncertainties.
On Thursday, new home sales and building permits data from Australia will be looked upon for fresh impetus in the early trading hours of the Asian session. In the second half of the day, first-quarter GDP data from the U.S. alongside trade balance figures will be watched closely by the participants.
Technical levels to watch for
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