- AUD / USD rose to fresh multi-week highs near 0.7700.
- The US Dollar Index remains depressed below 92.00 on Wednesday.
- With an eye on FOMC Chairman Powell’s speech, Fed’s Beige Book.
After posting modest daily gains on Tuesday, the pair AUD/USD It continued to gain bullish momentum and touched its highest level since March 23 at 0.7696. At time of writing, the pair was up 0.63% on the day at 0.7686.
USD liquidation takes a breather ahead of the US session
Strong selling pressure surrounding the USD amid falling US Treasury yields provided a boost to AUD / USD. After the Basic Index of Consumer Prices in the USA reached 1.6% per year in March, the yield of the US Treasuries In addition, the strong demand observed in the auction of Treasuries of The 30-year US hit yields even more.
Reflecting the general weakness of the dollar, the US dollar index (DXY) fell to a fresh multi-week low of 91.66 before entering a consolidation phase.
Ahead of FOMC Chairman Jerome Powell’s speech at 16:00 GMT and the release of the Federal Reserve’s Beige Book, the DXY posted small daily losses at 91.75.
On Thursday, the Australian Bureau of Statistics will release the Consumer Inflation Expectations for April and the Labor Market Report for March. Investors expect the unemployment rate to drop to 5.7% and the job change to reach +35,000. A stronger than expected reading could help the AUD continue to outperform its US counterpart and vice versa.
Technical levels
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