AUD/USD clings to modest daily gains near 0.7370
- AUD/USD gained traction following a poor performance in the Asian session.
- US Dollar Index reversed its direction after climbing toward 93.00.
- Wall Street's main indexes trade mixed at the start of the week.
The AUD/USD pair closed the previous week in the negative territory and dropped to its lowest level in more than a week at 0.7337 during the Asian trading hours on Monday. Nevertheless, the pair managed to reverse its direction with the greenback struggling to find demand in the second half of the day. As of writing, AUD/USD was up 0.18% on the day at 0.7369.
DXY turns south before reaching 93.00
Earlier in the day, the broad-based USD strength caused AUD/USD to push lower. In the absence of high-tier macroeconomic data releases, the US Dollar Index (DXY) built on Friday's gains and reached its strongest level since late August at 92.88. However, the sharp decline witnessed in the US Treasury bond yields forced the USD to lose its strength against its major rivals. As of writing, the DXY was virtually unchanged at 92.64 and the benchmark 10-year US T-bond yield is falling 1.5%.
In the meantime, Wall Street's main indexes are trading mixed after opening decisively higher on Monday and limit AUD/USD's upside. Currently, the S&P 500 Index is up 0.12% and the Nasdaq Composite is down 0.1%.
On Tuesday, the second-quarter House Price Index and the National Bank of Australia's Business Confidence Index for August will be featured in the Australian economic docket. Later in the day, the US Bureau of Labor Statistics will publish the Consumer Price Index (CPI) figures for August.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
