- AUD / USD rose to a daily high of 0.7592 during the American session.
- The US dollar index appears to break the three-day winning streak.
- The announcement of a Brexit deal could weigh on the USD.
The pair AUD/USD it extended its daily rally during US business hours and hit a daily high of 0.7592 before entering a consolidation phase. At time of writing, the pair was up 0.85% on the day at 0.7585.
USD struggles to find demand on Brexit hopes
Although the initial reaction to the release of US macroeconomic data helped the dollar pick up steam, the US dollar index (DXY) turned south after the latest Brexit headlines signaled a deal before Christmas. The impressive rally seen in GBP / USD dragged the DXY to a daily low of 90.15. For now, the index, which closed the previous three trading days in positive territory, is down 0.4% on the day to 90.28.
The US Bureau of Economic Analysis reported Wednesday that US Personal Income and Spending declined 1.1% and 0.4% in November, respectively. However, other data revealed that durable goods orders were up 0.9%, compared to analysts’ estimate of 0.6%, and weekly initial jobless claims fell to 803,000 from 892,000.
Investors will closely follow developments related to the EU-UK trade negotiations for the remainder of the day. Various media outlets say that a deal could be announced after 19:00 GMT and that weak trading conditions could trigger strong fluctuations in USD-denominated pairs.
Technical levels
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