- AUD / USD is approaching 0.7200 on Wednesday.
- The impressive performance of the NZD helped the AUD gain traction during the Asian session.
- The US dollar index posts small recovery gains after a two-day slide.
The pair AUD/USD gained traction during Asian business hours and hit a new weekly high of 0.7796 before entering a consolidation phase. At time of writing, AUD / USD was up 0.4% on the day at 0.7780.
AUD capitalizes the NZD rally
The strong rally observed in the NZD / USD pair following the observed sea change in the policy outlook of the Reserve Bank of New Zealand helped the positively correlated AUD / USD pair to rise. The NZD / USD is currently trading at its highest level in three months at 0.7309, rising more than 1% on the day.
Meanwhile, data from Australia showed that the leading Westpac index fell to 0.2% in April from 0.45% in March, but this reading did not provoke a noticeable reaction in the market.
On the other hand, the US Dollar Index, which closed the first two trading days of the week in negative territory, is making a technical correction and posting small daily gains at 89.75, limiting the AUD / USD rise for the time being.
No high-level macroeconomic data will be released on the US economic agenda on Wednesday and the perception of risk could affect the USD market valuation. At the moment, S&P 500 futures and Nasdaq futures are up 0.3%, suggesting that the dollar could struggle to attract investors in the second half of the day.
Technical levels
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