- AUD / USD is rising for the third day in a row.
- The US Dollar Index struggles to stay above 92.00 ahead of ISM Services PMI data.
- The change in US ADP employment disappointed market expectations by a wide margin in July.
After closing in positive territory on Tuesday supported by the Reserve Bank of Australia’s aggressive policy outlook, the pair AUD/USD it retained its bullish momentum and touched its highest level in three weeks at 0.7425. At time of writing, the pair was up 0.3% on the day at 0.7417.
DXY falls below 92.00 after ADP data
Renewed USD weakness early in the US session appears to be allowing AUD / USD to maintain its bullish momentum.
Data released by the Automatic Data Processing Research Institute (ADP) revealed on Wednesday that employment in the US private sector increased by 330,000 in July. This reading fell short of the market expectation of 695,000 and put the dollar under modest selling pressure. Currently, the US Dollar Index (DXY) is down 0.15% to 91.93.
On the other hand, data from Australia showed that Retail Sales in June contracted 1.8% as expected.
Later in the session, market participants will closely follow the July services PMI reports from IHS Markit and the ISM.
Meanwhile, US equity futures turned negative the day after the ADP data, suggesting that the DXY downside could remain capped in the second half of the day if the market sentiment turns sour post-trade. Wall Street opening bell.
Technical levels
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