- AUD/USD is posting small daily losses around 0.7900.
- US Dollar Index holds above 90.00 during the American session.
- Fed's Powell doesn't expect inflation dynamics to change in the near-term.
The AUD/USD pair declined to a session low of 0.7880 in the early trading hours of the American session but staged a modest rebound. As of writing, the pair was down 0.15% on a daily basis at 0.7905.
DXY fails to gather momentum during Powell's testimony
With Wall Street's main indexes starting the day deep in the negative territory, the USD gathered strength against its rivals as a safe-haven and the US Dollar Index (DXY) edged higher to 90.26. However, the DXY struggled to preserve its bullish momentum during FOMC Chairman Powell's testimony before the Senate Banking Committee.
Powell downplayed concerns over an uncontrolled rise in inflation and said that he doesn't expect inflation dynamics to change in the near-term. "We don't see how a burst in fiscal support or spending would lead to high inflation," Powell added and said they have the tools to deal with "unwanted inflation." At the moment, the DXY is up 0.17% on the day at 90.16.
Earlier in the day, the data published by the Conference Board showed that the Consumer Confidence Index in February improved to 91.3 to beat the market expectation of 90 but this reading was largely ignored by market participants.
During the Asian session on Wednesday, the Wage Price Index for the fourth quarter will be published from Australia.
Technical levels to watch for
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.
Recommended content
Editors’ Picks
EUR/USD stays in positive territory near 1.0650
EUR/USD clings to modest daily gains at around 1.0650 in the American session on Wednesday. The US Dollar struggles to gather strength amid a modest improvement seen in risk mood and helps the pair hold its ground.
GBP/USD stabilizes at around 1.2450 after UK inflation data
GBP/USD consolidates its daily gains near 1.2450 after recovering toward 1.2500 with the immediate reaction to stronger-than-expected inflation data from the UK. The renewed US Dollar weakness also helps the pair hold its ground.
Gold eases despite risk-off mood
Gold trades in a relatively tight range near $2,390 in the second half of the day on Wednesday. In the absence of high-tier data releases, investors keep a close eye on headlines surrounding the Iran-Israel conflict.
XRP tests $0.50 resistance after Ripple CLO clarifies that no pretrial conference took place with SEC
XRP is stuck below $0.50 resistance after failing to close above this level since Monday. Ripple CLO Stuart Alderoty said late Tuesday there was no pretrial conference since the SEC dropped charges against executives.
World economy: To cut or not to cut (simultaneously)?
US inflation March figure, again higher than expected, put an end to the scenario of a simultaneous first rate cut by the Fed, the ECB, and the BoE in June.