- AUD / USD remains under modest bearish pressure on Wednesday.
- The US dollar DXY index rises after Tuesday’s correction.
- The US December CPI rises above expectations.
After closing in positive territory on Tuesday, the pair AUD / USD has lost traction and has fallen to a new daily low of 0.7720 at the start of the American session on Wednesday. At the time of writing, the pair is down 0.57% on the day, trading at 0.7730.
The DXY index recovers
The renewed strength of the USD on Wednesday is forcing the AUD / USD to keep pushing lower. The US dollar DXY index lost 0.4% on Tuesday after the US bond auction sent yields plummeting at the end of the US session. With market sentiment turning cautious, the dollar has started to recoup the losses it suffered against major currencies. At the time of writing, the DXY index is gaining 0.2% on the day at 90.27.
At the start of the American session, the US Bureau of Labor Statistics has published the figures for the December CPI consumer price index, which rose 0.4% in December, in line with expectations and above the 0.2% increase in November. The underlying index advanced 0.1%, also matching the market consensus. The annual variation of the CPI was 1.4%, higher than the 1.3% expected and 1.2% from the previous month
During the Asian session on Thursday, new catalysts will be looked for in the data of the China trade balance.
According to analysts at UOB Group, AUD / USD needs to close above 0.7820 daily in order to make a sustained advance towards the next resistance at 0.7860. “Right now, the outlook for AUD / USD to move clearly above 0.7820 is not high, but would remain intact as long as the pair does not move below 0.7680 (‘strong support’ level),” they added. analysts.
AUD / USD technical levels