- AUD / USD is making small daily losses around 0.7900.
- The US dollar DXY index remains above 90.00 during the American session.
- Fed Chairman Powell does not expect inflation dynamics to change anytime soon.
The pair AUD/USD has fallen to a daily low of 0.7880 at the start of the American session, but has registered a modest rebound. At time of writing, the pair is down 0.15% on the day at 0.7913.
DXY index fails to gain momentum during Powell’s testimony
With the major Wall Street indices starting the day deep in negative territory, the USD has gained traction against its rivals as a safe haven and the US dollar DXY index has risen to 90.26. However, the DXY index has struggled to maintain its bullish momentum during the FOMC chairman’s testimony, Jerome Powell, before the Senate Banking Committee.
Powell has downplayed concerns about a runaway rise in inflation and he has said that he does not expect inflation dynamics to change in the short term. “We don’t see how an explosion in fiscal support or spending would lead to high inflation,” Powell added, saying that have the tools to deal with “unwanted inflation”. At the moment, the DXY index is up 0.17% on the day at 90.16.
Earlier in the day, data released by the Conference Board showed that the consumer confidence index in February improved to 91.3 points, topping the market expectation of 90, but this reading was largely ignored by market participants.
During the Asian session on Wednesday, the fourth quarter wage price index will be released from Australia.
AUD / USD technical levels
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