- AUD / USD lost its traction after climbing to the 0.7750 zone.
- The US Dollar Index registers small daily gains around 92.00.
- Investors await the auction of US 10-year banknotes at 18:00 GMT.
The pair AUD/USD It advanced to a daily high of 0.7746 in the early trading hours of the US session, but struggled to preserve its bullish momentum. With the dollar finding some demand, the pair erased a large chunk of its daily gains and was last seen trading modestly higher on the day at 0.7715.
The focus shifts to the US 10-year bond auction.
Earlier in the day, data released by the US Bureau of Labor Statistics showed that the Basic Consumer Price Index (CPI) in February fell to 1.3% and disappointed the market expectation of 1.4%. This reading failed to trigger a market reaction, but the positive start seen in the major Wall Street indices caused the dollar to start to lose steam against its rivals.
On the other hand, moderate comments from the Governor of the Reserve Bank of Australia (RBA), Phillip Lowe, also keep the rise of the AUD / USD limited. Lowe said the RBA is considering extending the bond purchase program.
The US Dollar Index (DXY) fell below 92.00 at the start of the US session, but had no difficulty limiting its losses as investors stayed on the sidelines ahead of the 10-year US banknote auction. At the moment, the DXY is in positive territory at 92.02. Meanwhile, the 10-year US Treasury yield remains virtually unchanged at 1,523%.
In the early trading hours of the Asian session on Thursday, Australian consumer inflation expectations data will be considered for further momentum.
Technical levels
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