AUD/USD rebounds to 0.7350 on improved risk sentiment

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.

Eren Sengezer FXStreet

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

AUD/USD

Overview
Today last price	0.735
Today Daily Change	0.0020
Today Daily Change %	0.27
Today daily open	0.733

Trends
Daily SMA20	0.7483
Daily SMA50	0.7616
Daily SMA100	0.7664
Daily SMA200	0.7588

Levels
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

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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