- AUD / USD remains directionless, trading in a tight range above 0.7400.
- The US dollar index remains on track to post modest daily gains.
- Westpac consumer confidence will be on the Australian economic agenda.
The pair AUD/USD it continues to fluctuate in a very tight channel above 0.7400 on Tuesday and remains virtually directionless. At time of writing, the pair was down 0.03% on the day at 0.7418.
Earlier in the day, data from Australia showed that house prices in the third quarter rose more than expected. Additionally, National Australia Bank business confidence improved to 12 in November from 3 October. However, the AUD was unable to capitalize on this data and allowed the AUD / USD to stay in its range.
Focus shifts to US and Chinese data
In the second half of the day, the US Dollar Index (DXY) rebounded modestly. However, the mixed performance of major US equity indices and the lack of high-level data releases suggest that the DXY rally is a technical correction and is likely to remain limited in the near term. At time of writing, the DXY was up 0.12% on the day at 90.91.
In the early trading hours of the Asian session on Wednesday, Westpac’s consumer confidence index will be the only data included on the Australian economic agenda. Also, China’s Consumer Price Index (CPI) will be considered for further momentum. Markets expect inflation in China to hit -0.2% monthly in November and a higher reading could be seen as a signal to improve economic activity and help the AUD gain strength.
Technical levels
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