- AUD / USD has started to rise after approaching 0.7700.
- The US Dollar DXY Index is struggling to stay in positive territory.
- Retail sales in the US are expected to decline 0.5% in February.
After passing the Asian session within a tight range around 0.7750, the pair AUD / USD lost its traction and fell to a daily low of 0.7711 at the beginning of the European opening. Nevertheless, With the dollar struggling to retain its strength, the pair has rebounded in the last hour and is currently trading at 0.7741, still losing 0.17% on the day.
In the March meeting minutes released Tuesday, The Reserve Bank of Australia (RBA) has reiterated that it does not expect to achieve its employment and inflation targets before 2024, which indicates that monetary policy will continue to be stimulating for a long time to come. However, investors paid little or no attention to this post.
DXY Index Loses Bullish Momentum
On the other hand, the DXY US Dollar Index is posting small daily losses below 91.80 as it 10-year US Treasury yield is pushing down for the second day in a row on Tuesday and is allowing the AUD / USD to move away from the daily lows.
Later in the session, February retail sales and industrial production data will be included in the US economic calendar. Investors expect retail sales to fall 0.5%. A stronger than expected figure could help the USD regain its strength as it could be seen as a likely factor driving inflation.
On Wednesday, market participants will closely follow data from Australia’s leading Westpac indicator.
AUD / USD technical levels
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