AUD/USD extends daily slide toward 0.7100 ahead of mid-tier US data
- AUD/USD is falling for a fourth straight day on Wednesday.
- US Dollar Index is edging higher above 94.00 after a brief consolidation.
- Focus shifts to Manufacturing and Services PMI data from the US.
The AUD/USD pair came under renewed bearish pressure in the early American session and touched its lowest level since August 12th at 0.7111. As of writing, the pair was down 0.86% on a daily basis at 0.7113.
Earlier in the day, the disappointing macroeconomic data releases from Australia weighed on the AUD. The Australian Bureau of Statistics reported that Retail Sales in August declined by 4.2% following July's increase of 3.2%. Although the Commonwealth Bank Services PMI for Australia improved from 49 to 50 in September, it failed to help AUD/USD gain traction.
USD preserves its strength on Wednesday
Meanwhile, following a consolidation phase near 94.00 during the European session, the US Dollar Index (DXY) regained its traction and caused AUD/USD to start pushing lower. At the moment, the DXY is up 0.15% on a daily basis at 94.12.
Later in the session, the IHS Markit's preliminary Manufacturing and Services PMI data will be watched closely by the market participants. In the past couple of weeks, upbeat macroeconomic data releases helped the USD outperform its rivals, suggesting that the DXY could climb higher on the back of upbeat PMI figures. Moreover, FOMC Chairman Jerome Powell will be testifying before Congress but investors don't expect to see any surprising remarks on the policy outlook.
There won't be any macroeconomic data releases featured in the Australian economic docket on Thursday.
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.
