AUD/USD goes into consolidation near 0.6850 following five-day rally
|- Business confidence in Australia deteriorates slightly in August.
- US Dollar Index stays quiet below 98.50 mark.
- Coming up: Westpac Consumer Confidence report from Australia.
After closing the previous five trading days in the positive territory and adding nearly 150 pips during that period, the AUD/USD pair has gone into a consolidation phase on Tuesday and is moving sideways in a tight channel near 0.6850.
Subdued market action causes majors to stay flat
Earlier today, the National Bank of Australia reported that the Business Confidence Index in August fell to 1 from 4 in July and the Business Conditions Index dropped to 1 from 2 to make it difficult for the Aussie to continue to outperform the Greenback. Additionally, the Producer Price Index in China slumped to -0.8% on a yearly basis in August to further weigh on antipodeans.
On the other hand, the lack of significant macroeconomic data releases from the United States didn't allow the US Dollar Index to gain traction and limited the pair's losses. At the moment, the US Dollar Index is posting small daily gains at 98.38.
During the early trading hours of the Asian session, the Westpac Consumer Confidence report from Australia will be looked upon for fresh impetus.
However, it seems like investors are likely to stay on the sidelines while waiting for fresh developments surrounding the US-China trade conflict. Earlier today, White House trade adviser Navarro said that they need to be patient regarding the US-China trade talks but didn't deliver any remarks hinting at progress in negotiations.
Technical levels to watch for
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