- AUD / USD is fluctuating in a relatively tight range on Wednesday.
- The US dollar index is struggling to make a decisive rally after a previous slide.
- The focus shifts to the Australian employment report for August.
After closing in negative territory on Tuesday, the pair AUD/USD it fell in the Asian session on Wednesday and hit its weakest level in two weeks at 0.7302. In the second half of the day, the pair reversed its direction and was last seen gaining 0.2% on the day at 0.7332. However, the pair appears poised to continue trading in a tight channel ahead of Australia’s August jobs report.
DXY remains low
The modest selling pressure surrounding the dollar appears to be allowing the AUD / USD to remain in positive territory during US trading hours. At time of writing, the US Dollar Index (DXY) was down 0.2% on the day at 92.48.
Earlier in the session, US data showed that New York’s Empire State Manufacturing Index rose to 34.3 in September from 18.3 in August. Additionally, the US Federal Reserve announced that Industrial Production expanded 0.5% monthly in August, compared to the market’s expectation of 0.4%.
Meanwhile, the modest recovery seen in the 10-year US Treasury yield and the mixed performance of the major Wall Street indices help the USD limit its losses for the time being.
The Australian Bureau of Statistics is expected to report that the Unemployment Rate rose to 4.9% in July from 4.6% in June with the Job Change reaching -70,000. A disappointing labor market report is likely to force AUD / USD to turn south and vice versa.
Technical levels
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