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AUD/USD retreats to 0.7600 area amid broad USD strength

  • AUD/USD edges lower ahead of the American session.
  • US Dollar Index clings to gains above 92.20 ahead of US CPI data.
  • Cautious market mood is helping USD preserve its strength.

The AUD/USD pair started the day under modest bearish pressure but managed to stage a rebound during the European trading hours on Tuesday. After rising to 0.7620, however, the pair lost its traction and was last seen losing 0.27% on a daily basis at 0.7600.

Focus shifts to US CPI data

The broad-based USD strength seems to be weighing on AUD/USD ahead of the American session. In addition to the 1% increase witnessed in the 10-year US Treasury bond yield, the risk-averse market environment seems to be helping the greenback outperform its rivals.

Earlier in the day, the US  Food and Drug Administration (FDA) said that they recommend a  pause in the use of Johnson & Johnson’s coronavirus vaccine while they are reviewing six reported cases of a rare and severe type of blood clots. Following this headline, the S&P 500 Futures edged lower and was last seen losing 0.3% on the day at 4,108.

Later in the session, the US Bureau of Labor Statistics will release the Consumer Price Index (CPI) figures for March. The Core CPI, which excludes volatile food and energy prices, is expected to rise to 1.5% on a yearly basis from 1.3% in February. In case the US T-bond yields gain traction on a stronger-than-expected reading, AUD/USD could extend its daily slide in the second half of the day.

Technical levels to watch for


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