- AUD / USD is still on track to end the day in negative territory.
- The US Dollar Index clings to small daily gains near 92.60.
- The focus shifts to the minutes of meetings of the Reserve Bank of Australia.
The pair AUD/USD it struggled to shake off the bearish pressure and hit a daily low of 0.7319 in the first US session before entering a consolidation phase. At time of writing, the pair was shedding 0.43% on the day at 0.7337.
DXY remains above 92.50 after Friday’s slide
Earlier in the day, disappointing data from China, which showed Retail Sales and Industrial Production rising less than expected in July, weighed on the AUD.
On the other hand, the risk averse market environment, as reflected in the decline in global stock indices, helped the dollar to remain resilient against its rivals and did not allow the pair to rebound. Although the sharp drop seen in US Treasury yields limited the gains of the US dollar, the US dollar index remains afloat in positive territory above 92.60.
The only US data showed that the New York Fed’s Empire State Manufacturing Index fell to 18.3 in August from 43 in July. This figure disappointed market expectations of 29, but was largely ignored by market participants.
On Tuesday, the Reserve Bank of Australia (RBA) will release the minutes of its August policy meeting. Investors will be looking for new clues about the impact of the latest coronavirus-related lockdowns on the political outlook.
Technical levels
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