- AUD / USD is holding on to strong daily gains on Tuesday.
- Market optimism is helping the AUD find demand.
- The US Dollar Index remains defensive ahead of mid-level data.
After managing to close near 0.7400 on Monday, the pair AUD/USD It regained its traction during Asian trading hours on Tuesday and rose to its highest level since early September at 0.7476 before entering a consolidation phase. At time of writing, the pair was up 0.78% on the day at 0.7468.
DXY turns south as risk flows return
The positive change observed in market sentiment appears to be propelling AUD / USD on Tuesday. Reflecting the upbeat mood, US equity index futures rose 0.4-0.5%, suggesting that the major Wall Street indices are still on track to open into positive territory. On the other hand, the dollar is struggling to meet demand as a safe haven and the US dollar index (DXY) is losing 0.4% to 93.57.
Earlier in the day, the Minutes of the Reserve Bank of Australia (RBA) meeting offered no new insights on the bank’s policy outlook. The RBA reiterated that economic activity is expected to return to pre-pandemic levels in the second half of 2022, adding that they do not expect to reach the inflation target until 2024.
Later in the session, September US housing starts and building permits data will be analyzed for fresh momentum.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
