- AUD / USD is trading lower ahead of the American session.
- The US Dollar Index clings to gains above 92.20 ahead of US CPI data.
- Market risk aversion is helping the USD retain its strength.
The pair AUD/USD It started the day under modest downward pressure but managed to rebound during European business hours on Tuesday. However, after climbing to 0.7620, the pair lost traction and was last seen shedding 0.27% on the day at 0.7600.
The focus shifts to US CPI data.
Broad-based USD strength appears to be weighing on AUD / USD ahead of the US session. In addition to the 1% increase seen in the 10-year US Treasury yield, the risk-averse market environment appears to be helping the dollar outperform its rivals.
Earlier in the day, the U.S. Food and Drug Administration (FDA) said they recommend a pause in the use of Johnson & Johnson’s coronavirus vaccine as they review six reported cases of a rare and serious type. of blood clots. Following this headline, S&P 500 futures fell and was last seen shedding 0.3% on the day at 4.108.
Later in the session, the US Bureau of Labor Statistics will release the Consumer Price Index (CPI) figures for March. The core CPI, which excludes volatile food and energy prices, is expected to rise to 1.5% annually from 1.3% in February. Should US Treasury yields gain traction on a stronger-than-expected reading, AUD / USD could extend its daily slide into the second half of the day.
Technical levels
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