- AUD / USD remains on track to close with strong gains.
- The US dollar index falls due to the Wall Street rally.
- RBA’s Debelle says he’s not convinced negative rates work.
The pair AUD/USD it rose to its highest level since early September at 0.7368, but lost its traction before the US session. After falling towards 0.7300, the pair regained its traction in the last US session and was last seen gaining 0.93% on the day at 0.7352.
During Asian business hours, Reserve Bank of Australia (RBA) Deputy Governor Guy Debelle said he was not convinced negative rates are working in Australia. Meanwhile, data released by the Australian Bureau of Statistics revealed that Exports and Imports in October were up 6% and 8% respectively.
DXY does not hold in positive territory
In addition to the RBA comment, upbeat market sentiment provided a boost to the risk-sensitive AUD on Tuesday. Although the dollar took advantage of the increase in US Treasury yields in the first hours of US trading and recouped its losses, the rally in the US stock market sent the US dollar index turning south.
At time of writing, the Dow Jones Industrial Average and S&P 500 were up about 1.7% on the day and the DXY was down 0.26% to 92.26.
Meanwhile, US data showed that the Conference Board’s Consumer Confidence Index fell to 96.1 in November from 101.4 in October, but had little to no impact on market sentiment.
No significant macroeconomic data from Australia will be released on Wednesday and market risk perception is likely to remain the main driver of the AUD / USD movements.
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.
