AUD/USD climbs to fresh weekly highs above 0.7120
|- AUD/USD gained traction after breaking above 0.7100 on Tuesday.
- US Dollar Index declines toward 94.00 ahead of key data, presidential debate.
- S&P 500 futures are posting modest daily losses.
After spending the first half of the day fluctuating in a tight range below 0.7100, the AUD/USD pair gained traction ahead of the American session and rose to a fresh weekly high of 0.7128. As of writing, the pair was up 0.76% on the day at 0.7123.
DXY closes in on 94.00
The US Dollar Index (DXY), which gained 1.7% last week, staged a technical correction on Monday and closed in the negative territory. Ahead of key macroeconomic data releases and the first presidential debate, the DXY pushed lower on Tuesday and helped AUD/USD preserve its bullish momentum. At the moment, the DXY is down 0.25% at 94.04.
The US Census Bureau will release the Goods Trade Balance data for August at 1230 GMT. Later in the session, the Conference Board's Consumer Confidence Index data will be looked upon for fresh catalysts.
Meanwhile, the S&P 500 futures are down 0.15% on the day, suggesting that Wall Street could start the day modestly lower. Investors are likely to adopt a cautious mood in the second half of the day and the USD could take advantage of the risk-averse market environment and start recovering its losses against its major rivals.
On Wednesday, Building Permits and Private Sector Credit data will be featured in the Australian economic docket.
Technical levels to watch for
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