AUD/USD inches higher to 0.7160, but lacks follow-through
- DXY eases, helps the Aussie recovery.
- But upside appears limited amid bearish technical bias and thin trades.
- Focus shifts to US housing data for fresh trading impetus.
The AUD/USD pair picked up fresh bids and broke its Asian range trade to the upside, clinching fresh session highs near 0.7160 region, as the US dollar extends its pullback from two-week tops against its major rivals after the Mueller report revealed the US President Trump actions to impede the inquiry.
The greenback rallied to the highest levels since end-March at 97.48 after the US March retail sales report showed that the American consumer spending witnessed the fastest expansion in 18 months. The recent slew of upbeat US fundamentals quelled concerns over a slowing US economy and collaborated to the broad USD strength.
However, the further upside appears to lack follow-through amid Easter holiday-thinned trades and a lack of fresh catalysts while the technical indicators continue to back the case for the downside bias.
In the day ahead, the spot will continue to get influenced by the sentiment around the US dollar, as attention turns towards the US housing starts and building permits data due later today at 1230 GMT. Note that the US data is likely to have limited impact on the dollar trades, as most traders are already out on a 4-day Easter holiday season.
AUD/USD Technical Levels
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
