AUD/USD struggles to stage a rebound, steadies around 0.7770
|- AUD/USD remains on track to close the day in the negative territory.
- US Dollar Index clings to small daily gains, stays below 91.00.
- Focus shifts to first-quarter inflation data from Australia.
The AUD/USD pair failed to build on Monday's impressive gains and dropped to a daily low of 0.7764 before going into a consolidation phase on Tuesday. As of writing, the pair was down 0.35% on a daily basis at 0.7772.
Rising US Treasury bond yields seem to be helping the greenback stay resilient against its rivals. With the benchmark 10-year US T-bond yield gaining more than 1% on Tuesday, the US Dollar Index remains on track to close the day modestly higher a little below 91.00.
Earlier in the day, the data published by the Conference Board showed that the Consumer Confidence Index in the US rose to 121.7 in April, beating the market expectation of 113 by a wide margin. Nevertheless, this upbeat reading has virtually no impact on risk sentiment and Wall Street's three main indexes were last seen losing between 0.1% and 0.35%.
In the early trading hours of the Asian session on Wednesday, the Consumer Price Index data from Australia will be watched closely by market participants. The annual CPI is expected to rise to 1.4% in the first quarter from 0.9% and a higher-than-expected print could weigh on the AUD and vice versa.
AUD/USD outlook
"AUD/USD remains capped below its recent highs at 0.7815/16, as well as the more important 0.7838/49 high," noted Credit Suisse analysts. "A break above here would resolve the aforementioned range to the upside by triggering an irregular basing structure, confirming a resumption of the broader bull trend, suggesting a quick move to 0.7900/05 and then the 2021 high at 0.8000/07."
"A sustained move below 0.7700/7691 would turn the risks lower within the range and complete an intraday ‘double top’, with the next support just below here at 0.7680/74," analysts further added.
Additional levels to keep an eye on
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.