- AUD / USD loses its traction after moving higher during the Asian session.
- The US Dollar DXY Index is stable above 90.00 on Wednesday.
- FOMC Chairman Jerome Powell will testify before the House Financial Services Committee.
The pair AUD/USD closed virtually unchanged on Tuesday and has risen to its highest level in almost three years at 0.7945 during the Asian session on Wednesday. However, the pair has struggled to maintain its bullish momentum and has returned its daily gains. At the time of writing, the AUD / USD is virtually unchanged on the day at 0.7915.
DXY Index Remains Defensive After Tuesday’s Recovery
The US dollar DXY index closed in positive territory and snapped a three-day losing streak on Tuesday, but had Difficulty Extending Their Bounce After Pessimistic Comments From FOMC Chairman, Jerome Powell. The most powerful central banker in the world reiterated that they will not react to one-time increases in inflation and said they will maintain the accommodative policy. Currently, the DXY index records small daily losses at 90.14.
Later in the day, Jerome Powell will deliver his comments on the second day of his semi-annual testimony, this time before the House Financial Services Committee. New home sales for January will be the only data included in the US economic calendar.
Data released by the Australian Bureau of Statistics on Wednesday revealed that the wage price index in the fourth quarter rose to 0.6% from 0.1% in the third quarter and exceeded the market expectation of 0.3%. However, the market reaction to this report was silent. On Thursday, private capital spending data for Australia’s fourth quarter will draw investors’ attention for fresh momentum.
AUD / USD technical levels
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