- AUD/USD is trading in a relatively tight range on Wednesday.
- Data from Australia showed that the GDP expanded by 3.1% in Q4.
- Focus shifts to private sector employment and Services PMI data from US.
The AUD/USD pair spent the Asian session trading in a narrow band and came under modest bearish pressure ahead of the American session on Wednesday. As of writing, the pair was down 0.09% on a daily basis at 0.7810.
Earlier in the day, the data published by the Australian Bureau of Statistics revealed that the Gross Domestic Product (GDP) in the fourth quarter expanded by 3.1% on a quarterly basis. Although this reading came in better than the market expectation of 2.5%, it failed to provide a boost to the AUD.
USD gathers strength on the back of rising T-bond yields
On the other hand, the US Dollar Index (DXY), which lost 0.3% on Tuesday, started to edge higher on the back of rising US Treasury bond yields during the European trading hours and forced AUD/USD to lose its traction. At the moment, the DXY is up 0.18% on the day at 90.95 and the 10-year US T-bond yield is rising 3.7%.
Later in the day, the ADP Employment Change data from the US will be watched closely by market participants. Additionally, the IHS Markit and the ISM will be both releasing the February Services PMI reports. Finally, the Federal Reserve will release its Beige Book in the late American session.
On Thursday, January Trade Balance and Retail Sales figures will be featured in the Australian economic docket.
Technical levels to watch for
|Today last price||0.7812|
|Today Daily Change||-0.0016|
|Today Daily Change %||-0.20|
|Today daily open||0.7828|
|Previous Daily High||0.7838|
|Previous Daily Low||0.7736|
|Previous Weekly High||0.8008|
|Previous Weekly Low||0.7692|
|Previous Monthly High||0.8008|
|Previous Monthly Low||0.7562|
|Daily Fibonacci 38.2%||0.7799|
|Daily Fibonacci 61.8%||0.7775|
|Daily Pivot Point S1||0.7763|
|Daily Pivot Point S2||0.7698|
|Daily Pivot Point S3||0.766|
|Daily Pivot Point R1||0.7865|
|Daily Pivot Point R2||0.7903|
|Daily Pivot Point R3||0.7968|
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.