- The Australian dollar cuts gains against the US dollar in a mixed Wall Street.
- The greenback picks up some momentum even as US yields remain near daily lows.
The AUD/USD It peaked at 0.7636 in the early hours of the US session, but quickly turned back towards 0.7600. The move came as some Wall Street stocks fell back. At time of writing, the pair is trading 0.7605, up 10 pips on the day.
The dollar cut losses across the board, even as US yields remain near daily lows. Economic data from the US showed that the private sector added more than 500,000 jobs in March, according to ADP; Chicago’s PMI jumped to 66.3, beating expectations and existing home sales fell 10.6% in February.
Market participants mostly ignored these numbers. On Friday, the nonfarm payroll report will be released. Later on Wednesday, US President Biden will present his infrastructure plan. In Australia on Thursday, economic data to be released include AiG performance, home loans, trade balance and retail sales.
Short-term technical outlook
The AUD / USD pair again fell below the 20 in four hours SMA which sits at 0.7620. A consolidation above 0.7620 should remove the negative short-term bias. The decline appears controlled while above 0.7585. A break to the downside would expose last week’s low at 0.7562 and the critical 0.7560 support area.
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.
