- AUD / USD continues to push lower ahead of the US session.
- The US Dollar Index recovered to the 90.00 zone on Wednesday.
- Rising US Treasury yields and safe-haven flows support the USD.
After passing the Asian session in a relatively tight range below 0.7800, the pair AUD/USD it lost balance during European trading hours and fell to a daily low of 0.7732. At time of writing, the pair was down 0.58% on the day at 0.7745.
Looking to Wall Street, FOMC Minutes
Widespread USD strength is weighing on AUD / USD on Wednesday. The risk-off market environment, as reflected in a 1% drop in S&P futures, is helping the safe-haven dollar outperform its rivals. At the moment, the US Dollar Index is up 0.2% on the day at 89.98.
Hours earlier, data from Australia showed Westpac’s May Consumer Confidence Index fell to -4.8% from 6.2% in April. On a positive note, the wage price index in the first quarter rose to 1.5% and exceeded the market expectation of 1.4%.
No high-level macroeconomic data will be released in the US economic record on Wednesday. At 18:00 GMT, the US Federal Reserve will release the minutes of its April meeting.
In the meantime, investors will pay close attention to the performance of US stocks. Should the major Wall Street indices suffer heavy losses after the opening bell, the USD could continue to gain strength and weigh on the AUD / USD.
Technical levels
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