AUD/USD retreats below 0.7600 as market mood sours
- AUD/USD is having a tough time holding above 0.7600.
- US Dollar Index clings to modest daily gains above 92.60.
- S&P 500 Futures turned negative on the day ahead of US data.
After rising above 0.7600 during the European trading hours, the AUD/USD pair lost its traction as the negative shift witnessed in market sentiment provided a boost to the greenback. As of writing, the pair was trading at 0.7590, still rising 0.1% on a daily basis.
Safe-haven flows return
Ahead of the US Bureau of Economic Analysis' fourth-quarter GDP report and the US Department of Labor's weekly Initial Jobless Claims data, the S&P 500 Futures erased its daily gains and was last seen losing 0.43% on the day. Consequently, the US Dollar Index is up 0.15% on the day at 92.67.
Earlier in the session, FOMC Chairman Jerome Powell reiterated that they are strongly committed to inflation that averages 2% over time. "As the economy recovers and makes substantial further progress toward our goals, we will roll back bond purchases," Powell told National Public Radio (NPR).
Later in the day, New York Federal Reserve President John Williams and Federal Reserve's Vice Chairman Richard Clarida will be delivering speeches. Meanwhile, investors will keep a close eye on the performance of Wall Street's main indexes and a sharp decline after the opening bell could help the USD continue to outperform its rivals.
There won't be any significant macroeconomic data releases featured in the Australian economic docket on Friday.
Technical levels to watch for
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.
