AUD/USD flat for the day, weighed by falling oil prices, equities

  • Aussie couldn't retake 0.7890 against the greenback.
  • US first-tier data on Wednesday to set the tone.

The AUD/USD pair attempted to extend its latest recovery this Tuesday, but faltered at 0.7876, its highest in almost a week, and plunged to 0.7827 early US session, following the soft tone of equities. Oil prices also dented Aussie's strength, as the commodity remained near its 2018 low, following a report from the  International Energy Agency, raising its forecast for 2018 global oil demand growth to 1.4m b/d, on a stronger global economy, with total consumption expected at 99.2m b/d.

In the data front, the NAB's Business Confidence index  released early Tuesday surged to 12 in January, its highest in nine months, while the Business Conditions index, surged to 19 from a previous 13, both well above market's expectations and reflecting an improved economic outlook. Australia won't offer any relevant macroeconomic news this Wednesday.

The pair is trapped between 0.7820 and 0.7890, the 50% and the 38.2% Fibonacci retracements from the December/January rally, and the levels to break to see the pair gaining some directional strength. The overall sentiment toward the greenback remains weak, but it will be US CPI release this Wednesday what will probably set the tone for the AUD/USD. 

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