AUD / USD cuts early losses, trading modestly higher near 0.7420

  • AUD / USD is experiencing a decisive rally in the first US session.
  • The US Dollar Index is not holding above 91.00.
  • Consumer Credit Change will be the only US data.

The pair AUD/USD It fell to a daily low of 0.7372 during European trading hours on Monday, but had no difficulty erasing its losses. At time of writing, the pair posted small daily gains at 0.7424.

DXY bounce loses steam

The USD market valuation remains the main driver of the AUD / USD movements at the beginning of the week. The US Dollar Index (DXY), which fell more than 1% last week, rose to a daily high of 91.23 as renewed concerns about the no-deal Brexit triggered a flight to safety.

However, the DXY was unable to preserve its bullish momentum and reversed its direction in the early trading hours of the US session. In the absence of significant fundamental drivers, an observed 2.7% decline in the 10-year US Treasury yield appears to have started to weigh on the USD.

Later in the session, the Federal Reserve will release the Consumer Credit Change data for October. On Tuesday, the National Bank of Australia business confidence and the third quarter house price index will be on the Australian economic agenda.

On Monday, data from China showed that the country’s trade surplus widened to $ 75.42 billion in November from $ 58.44 billion in October, but it did not help the AUD, China’s proxy, to start the week on a solid footing. .

Technical levels

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