- AUD/USD reversed its direction in the second half of the day.
- US Dollar Index looks to snap four-day winning streak.
- Wall Street's main indexes continue to trade in the positive territory.
The AUD/USD pair dropped to its lowest level of 2021 at 0.7290 during the European trading hours but managed to stage a recovery in the American session. As of writing, the pair was up 0.28% on a daily basis at 0.7350.
DXY rally loses steam
Earlier in the day, the data from Australia revealed that the Westpac Leading Index declined to -0.06 in June from 0.04 in May. Furthermore, the Australian Bureau of Statistics announced that Retail Sales contracted by 1.8% in June, missing the market expectation for a decline of 0.5%.
In addition to the disappointing data releases, the broad-based USD strength weighed on AUD/USD during the first half of the day as the US Dollar Index (DXY) climbed to its highest level since early April at 93.19.
Nevertheless, the positive shift witnessed in market sentiment helped the risk-sensitive AUD find demand and forced the greenback to weaken against its rivals. Currently, the DXY is losing 0.17% on the day at 92.80 and looking to snap a four-day winning streak. Reflecting the risk-positive market environment, the S&P 500 Index, which gained more than 1% on Tuesday, is up 0.42% at 4,341.
On Thursday, the National Australia Bank's Business Confidence for the second quarter will be looked upon for fresh impetus.
Technical levels to watch for
|Today last price||0.735|
|Today Daily Change||0.0020|
|Today Daily Change %||0.27|
|Today daily open||0.733|
|Previous Daily High||0.7357|
|Previous Daily Low||0.7299|
|Previous Weekly High||0.7504|
|Previous Weekly Low||0.7391|
|Previous Monthly High||0.7794|
|Previous Monthly Low||0.7477|
|Daily Fibonacci 38.2%||0.7321|
|Daily Fibonacci 61.8%||0.7335|
|Daily Pivot Point S1||0.73|
|Daily Pivot Point S2||0.727|
|Daily Pivot Point S3||0.7242|
|Daily Pivot Point R1||0.7358|
|Daily Pivot Point R2||0.7387|
|Daily Pivot Point R3||0.7417|
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.