AUD/USD erases majority of daily losses, trades around 0.7750
- AUD/USD regained its traction after declining toward 0.7700.
- US Dollar Index steadies around 90.00 in the American session.
- Wall Street's main indexes trade in the positive territory.
The AUD/USD pair remained under modest bearish pressure during the European trading hours and dropped to a daily low of 0.7715. With the greenback losing its strength in the second half of the day, the pair staged a rebound and was last seen posting small daily losses at 0.7745.
DXY edges lower ahead of Fed's Beige Book
Earlier in the day, the US Dollar Index (DXY) climbed to 90.25 but reversed its direction after Wall Street's main indexes started the day in the positive territory. Additionally, the 10-year US Treasury bond yield, which rose 2% on Tuesday, is currently down 1.15% at 1.591%, putting additional weight on the greenback's shoulders. As of writing, the DXY is unchanged on the day at 89.95.
The only data from the US showed on Wednesday that the IBD/TIPP Economic Optimism Index improved to 56.4 in June from 54.4. Nevertheless, this report failed to trigger a meaningful market reaction.
Later in the day, the US Federal Reserve will release its latest Beige Book. During the Asian trading hours on Thursday, April Trade Balance and Retail Sales data will be featured in the Australian economic docket. Moreover, the Caixin Services PMI from China will be looked upon for fresh impetus as well.
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.
