- AUD / USD clings to modest daily gains, holding below 0.7800.
- The US Dollar Index fluctuates in a narrow range around 91.00.
- Safe haven flows could dominate financial markets in the US session.
The pair AUD/USD it managed to capitalize on Monday’s earnings and hit its highest level in a month at 0.7816 on Tuesday. However, the AUD struggled to preserve its bullish momentum amid an observed negative shift in market sentiment and retraced a portion of its daily rally. At time of writing, the pair was moving sideways around 0.770, clinging to modest daily gains.
DXY makes small gains in early US session
Earlier in the day, persistent selling pressure surrounding the USD allowed AUD / USD to continue to climb. However, with S&P 500 futures turning south, the dollar began to show resistance against its rivals. At the moment, the US Dollar Index (DXY) is up 0.07% on the day at 91.15.
Should the major Wall Street indices fall sharply after the opening bell, safe-haven flows could weigh on AUD / USD in the second half of the day.
On the other hand, the minutes of the April meeting of the Reserve Bank of Australia (RBA) offered no surprises regarding the policy outlook. The RBA reiterated that it will not increase the policy rate until real inflation is sustainably in the 2-3% target range. “The Board is prepared to undertake more bond purchases, beyond the AUD200 trillion announced, if it helps with progress towards its targets,” the statement read, but failed to trigger a notable reaction in AUD / USD.
No macroeconomic data will be released on the US economic calendar for the remainder of the day and risk perception is likely to remain the main driver of the AUD / USD movements.
Technical levels
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