- The AUD / USD lost momentum and undertook a pullback in the European session.
- The DXY tries to make up lost ground.
- Ahead: US foreign trade data and Fed minutes.
AUD / USD closed the first two days of the week in positive territory supported by the dollar’s downward correction throughout the market. On Wednesday after reaching 0.7676, the highest level since March 23, it changed direction and fell back to the 0.7620 area. In the run-up to the opening of the American session, it is trading around 0.7630, losing 30 pips so far this day.
Hours earlier, data from Australia showed the Commonwealth Bank’s services PMI rose to 55.5 in March from 53.4. However, this reading did not meet the market expectation of 56.2. The data went unnoticed by the market.
The mixed dollar on Wednesday
The Dollar decline throughout the market peaked in the European session, coinciding with the lowest point in Treasury yields. The 10-year rate reached 1.63%, the lowest since March 26, and then rebounded to 1.65%.
The change in yields gave the dollar strength to recover positions especially against currencies linked to commodities and emerging markets. Wall Street futures are in neutral ground and in Europe the main indices have moved away from the highs of the session.
Looking ahead to the next few hours, the focus of attention will be on the minutes of the last Federal Reserve meeting, to be published at 18:00 GMT. The weather of the opening of Wall Street and the bond market may be key ahead of such event for the AUD / USD and the DXY.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
