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AUD/USD retreats below 0.7300 on DXY rebound

  • AUD/USD turned flat on the day below 0.7300 in American session.
  • US Dollar Index recovered above 93.00 after a sharp drop.
  • Wall Street’s main indexes fell into the negative territory.

The AUD/USD pair rose to its highest level in a week at 0.7325 during the early American session on Thursday but struggled to preserve its bullish momentum. As of writing, the pair was virtually unchanged on the day at 0.7280.

DXY rebounds above 93 as markets turn risk-averse

Earlier in the day, the European Central Bank (ECB) in its policy statement voiced no concerns over the recent euro appreciation but noted that they will continue to assess developments in the exchange rate. This development triggered a rally in the EUR/USD pair and forced the greenback to come under broad selling pressure.

After slumping all the way down to 92.70, however, the US Dollar Index (DXY) staged a rebound in the late American session supported by safe-haven flows. At the moment, the DXY is down only 0.05% on the day at 93.19.

Wall Street’s main indexes started the day higher on Thursday but made a sharp U-turn and now remain on track to close in the negative territory amid a lack of progress in the next coronavirus stimulus bill. US Senate Republicans on Thursday fell short of the 60 votes needed and failed to pass the $300 billion coronavirus aid bill.

There won’t be any significant macroeconomic data releases from Australia on Friday and the USD’s market valuation is likely to remain the primary driver of AUD/USD’s movements.

Technical levels to watch for


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