AUD / USD cuts initial losses and recovers near 0.7050

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  • AUD / USD recovers after falling to new monthly lows.
  • The US Dollar DXY Index continues to climb towards the 94.00 level.
  • Market optimism helps the AUD stay resilient against the USD.

The pair AUD / USD has fallen to its lowest level since late September at 0.7010 on Thursday, but it has seen a rebound in the second half of the day supported by the monetary flows of appetite for risk. At the time of writing, the pair is down 0.23% on the day, trading near 0.7029.

The strength of the USD has pushed the AUD / USD pair lower ahead of the American session. However, market optimism, reflected by the decisive rebound observed in the main Wall Street indices, has helped risk-sensitive AUD find demand. At the moment, the S&P 500 Index is up 0.9% on the day.

Hours earlier, the first estimate from the US Bureau of Economic Analysis showed that gross domestic product real GDP in the US expanded 33.1% annually in the third quarter. This figure was higher than the market expectation of 31% and helped improve market sentiment.

The DXY index extends the rally towards the 94.00 level

On the other hand, the US dollar DXY index continues to rise amid strong selling pressure around the euro after the European Central Bank announced that it will take political action in December. With the DXY index gaining nearly 0.5% on the day at 93.86, the AUD / USD rally remains limited for the time being.

In the early hours of the Asian session on Friday, data from the PPI producer price index and private sector credit stand out on the Australian economic calendar.

Credits: Forex Street

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