AUD/USD remains depressed below 0.7400, US data eyed
- AUD/USD remains subdued on Thursday in the early European session.
- The Australian dollar losses against the greenback on mixed economic data, Delta variant concerns.
- US Dollar retreats from the higher level stay elevated above 92.80.
AUD/USD edges lower on Thursday as it fails to preserve the previous session’s upside momentum. The pair opened higher, however, it confides in a narrow trade band of 10-pips with negative bias.
At the time of writing, AUD/USD is trading at 0.7364, down 0.11% for the day.
The US Dollar Index (DXY), which tracks the performance of the greenback against its six major rivals recovers from its earlier lower levels to trade near its highest level since April around 92.85.
The US Consumer Price Inflation came at 5.4% in July, slightly above market expectations of 5.3%. The subdued inflation readings tempered bets for an earlier tightening of US monetary policy.
Meanwhile, San Francisco Fed president Mary Daly said he was optimistic about the recent set inflation price data and it’s appropriate to start discussing the reduction of the massive bond-purchase program.
On the other hand, Aussie loses grounds as investors assessed the impact of lockdown in Australia’s capital city Canberra from Thursday. New South Wales state records 345 new COVID-19 infections.
The Aussie weighed down by downbeat economic data, the Westpac-Melbourne Institute Index of Consumer Sentiment fell by 4.4% in August.
The National Bank of Australia warned that the recent outbreak of COVID-19 and extension of lockdown remains a downside risk to the economic recovery.
As for now, traders await the US Initial Jobless Claims, Producer Price Index (PPI) to trade fresh trading impetus.
AUD/USD additional levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
