AUD / USD falls sharply to the 0.7760 zone thanks to renewed USD strength

• The AUD / USD reversed its direction at the beginning of the American session.
• The US Dollar Index clears initial losses and recovers to 90.50.
• The New York Fed’s Empire State Manufacturing Index rose more than expected in February.

After climbing to the 0.7800 zone during European trading hours, the pair AUD/USD it reversed its direction early in the US session and fell to 0.7760, where it was down 0.22% on the day.

DXY starts a decisive rebound

The renewed strength of the USD in the second half of the day appears to be weighing on the AUD / USD. The US Dollar Index, which fell to a new multi-week low of 90.11 on Tuesday, is currently up 0.05% on the day at 90.52.

In the absence of important fundamentals, the 3% rise seen in the 10-year US Treasury yield is helping the dollar outperform its rivals. Meanwhile, data released by the Federal Reserve Bank of New York showed that the Empire State Manufacturing Index in February sharply improved to 12.1 from 3.5 in January and beat the market expectation of 6.

Meanwhile, S&P 500 futures are still up 0.25% on the day and a positive start to the day on Wall Street could help AUD / USD limit its losses.

There will be no other macroeconomic data release included on the US economic agenda for the rest of the day. On Wednesday, Australia’s leading westpac index is expected to give new momentum.

Technical levels