AUD/USD retreats to 0.7650 area as DXY recovers Friday's losses
- AUD/USD edges lower ahead of the American session.
- US Dollar Index gains traction following Friday's drop.
- National Australia Bank will release Business Confidence data on Tuesday.
The AUD/USD pair rose sharply on Friday after the gloomy US labour market data triggered a USD selloff. However, the pair struggled to preserve its bullish momentum on Monday and was last seen losing 0.25% on a daily basis at 0.7655.
DXY starts new week on firm footing
The US Burea of Labor Statistics announced that Nonfarm Payrolls (NFP) in the US rose by 49,000 in January. Further details of the publication showed that December's reading got revised down to -227,000 from -140,000. The US Dollar Index (DXY) turned south on this report and fell toward 91.00 toward the end of the week.
In the absence of significant fundamental drivers on Monday, the DXY regained its traction and was last seen rising 0.15% on the day at 91.18.
There won't be any data releases featured in the US economic docket. In the early trading hours of the Asian session on Tuesday, the National Australia Bank will release the Business Confidence and Business Conditions data for January.
Meanwhile, Wall Street's main indexes remain on track to start the day mıodestly higher. Last week's market action showed that the USD gathered strength on the back of rising equity indexes and a similar move could put additional weight on AUD/USD's shoulders in the remains of the day.
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.
