- AUD / USD fell to fresh multi-week lows on Wednesday.
- The US Dollar Index remains relatively quiet around 92.50.
- Investors expect durable goods orders and US PMI data.
The pair AUD/USD It fell to its lowest level since early February at 0.7584 on Wednesday, but managed to rebound before the US session. At time of writing, the pair was unchanged on the day at 0.7622.
Earlier in the day, the USD capitalized on safe-haven flows and continued to gain traction against its rivals with the US Dollar index advancing to its best level since Nov. 24 at 92.60. In addition, the sharp decline observed in the NZD / USD pair also affected the AUD / USD with a positive correlation.
Figures from the Commonwealth Bank Manufacturing PMI and Services PMI showed that business activity in Australia’s private sector expanded at a stronger pace in March than in February. However, the AUD was unable to take advantage of the upbeat data.
Regarding US data, the durable goods orders report for February showed figures below expectations. Orders in February fell 1.1%, while the market consensus was for an increase of 0.8%. In January there had been an increase of 3.5% (revised up from 3.4%). Later in the session, IHS Markit will release preliminary US Manufacturing and Services PMI reports.
Meanwhile, S&P 500 futures are up 0.5% on the day, suggesting the dollar could struggle to gain additional strength if the major Wall Street indices start the day decisively higher.
No significant macroeconomic data from Australia will be released on Thursday.
Technical levels
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