- AUD / USD struggles to make a decisive move in either direction.
- The RBA’s Kent says the policy measures will create very simulative monetary conditions.
- The US Dollar Index remains in negative territory around 90.00.
The pair AUD/USD It posted small losses on Tuesday before a modest rebound on Wednesday, but continues to trade in a very tight range since the beginning of the week. At time of writing, the pair was up 0.12% on the day at 0.7750.
USD weakens as US Treasury yields fall
In the absence of the release of high-level macroeconomic data, the falling US Treasury yield weighs on the dollar on Wednesday and allows AUD / USD to remain in positive territory. With the 10-year benchmark US Treasury yield falling to its lowest level in a month below 1.5%, the US dollar index is losing 0.2% to 89.96.
Hours earlier, data from Australia showed Westpac consumer confidence fell to -5.2% in June from -4.8% in May.
Meanwhile, Reserve Bank of Australia (RBA) Deputy Governor Christopher Kent said they see good growth prospects and expect an eventual rise in wages and inflation. “The policy measures have produced, and will continue to deliver, very stimulating monetary conditions,” added Kent. However, these comments were largely ignored by market participants.
Later in the session, wholesale inventory data for April will be released in the US, which is not expected to cause a noticeable reaction in the market. On Thursday, consumer inflation expectations and their new home sales data will be on the Australian economic docket.
Technical levels
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