- AUD/USD struggles to make a decisive move in either direction.
- RBA’s Kent says policy measures will deliver very simulatory monetary conditions.
- US Dollar Index stays in the negative territory around 90.00.
The AUD/USD pair posted small losses on Tuesday ahead of a modest rebound on Wednesday but continues to trade in a very narrow band since the beginning of the week. As of writing, the pair was up 0.12% on the day at 0.7750.
USD weakens on falling US T-bond yields
In the absence of high-tier macroeconomic data releases, falling US Treasury bond yield weigh on the greenback on Wednesday and allow AUD/USD to stay in the positive territory. With the benchmark 10-year US T-bond yield dropping to its lowest level in a month below 1.5%, the US Dollar Index is losing 0.2% at 89.96.
Earlier in the day, the data from Australia showed the Westpac Consumer Confidence fell to -5.2% in June from -4.8% in May.
Meanwhile, Reserve Bank of Australia (RBA) Assistant Governor Christopher Kent said they see good prospects for growth and expect an eventual increase in wages and inflation. “Policy measures have delivered, will continue to deliver, very stimulatory monetary conditions,” Kent added. Nevertheless, these comments were largely ignored by market participants.
Later in the session, April Wholesale Inventories data will be released from the US, which is not expected to trigger a noticeable market reaction. On Thursday, Consumer Inflation Expectations and HIS New Home Sales data will be featured in the Australian economic docket.
Technical levels to watch for
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