- AUD/USD turned south following a rebound in early American session.
- US Dollar Index regained its traction after dropping on US CPI data.
- Wall Street's main indexes turned negative on the day after opening higher.
The AUD/USD pair staged a rebound in the early American session and climbed above 0.7360 fueled by the broad-based USD weakness. However, the pair lost its momentum and quickly retraced its rally. As of writing, AUD/USD was trading at a fresh daily low of 0.7328, losing 0.5% on a daily basis.
USD capitalizes on risk-off flows
Earlier in the session, the data published by the US Bureau of Labor Statistics revealed that inflation, as measured by the Core Consumer Price Index (CPI), declined to 4% in August from 4.3% in July. This print came in lower than the market expectation of 4.2% and triggered a USD selloff.
However, the negative shift witnessed in market sentiment helped the greenback regather its strength and caused AUD/USD to turn south. The US Dollar Index, which fell to 92.32 after CPI data, is currently virtually unchanged on the day at 92.56.
US Inflation Quick Analysis: Team Transitory wins, dollar loses, why the trend may extend.
Reflecting the souring market mood, Wall Street's main indexes are losing between 0.6% and 0.3% on the day.
On Wednesday, the Westpac Consumer Confidence data for September and the HIA New Home Sales figures for August will be featured in the Australian economic docket.
Technical levels to watch for
|Today last price||0.7326|
|Today Daily Change||-0.0043|
|Today Daily Change %||-0.58|
|Today daily open||0.7369|
|Previous Daily High||0.7377|
|Previous Daily Low||0.7336|
|Previous Weekly High||0.7469|
|Previous Weekly Low||0.7345|
|Previous Monthly High||0.7427|
|Previous Monthly Low||0.7106|
|Daily Fibonacci 38.2%||0.7361|
|Daily Fibonacci 61.8%||0.7351|
|Daily Pivot Point S1||0.7344|
|Daily Pivot Point S2||0.7319|
|Daily Pivot Point S3||0.7302|
|Daily Pivot Point R1||0.7385|
|Daily Pivot Point R2||0.7402|
|Daily Pivot Point R3||0.7427|
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.