- AUD / USD started to rise in the American session.
- The US dollar index extended its daily decline to 92.80.
- Consumer confidence in the US weakened modestly in October.
The pair AUD/USD it spent the first half of the day fluctuating in positive territory near 0.7130 and began to rise in the last hour with the dollar having a hard time finding demand. At time of writing, the pair was up 0.28% on the day at 0.7142.
The general weakness of the USD during the US session appears to be giving a boost to the AUD / USD. After starting the day little changed, the major Wall Street indices began to rise to signal a positive shift in market sentiment. At the moment, the Nasdaq Composite and S&P 500 indices are up 0.95% and 0.2%, respectively, while the US Dollar Index is losing 0.3% to 92.79.
Meanwhile, US data showed that the Conference Board consumer confidence index fell to 100.9 in October from 101.3 in September. On a positive note, the Richmond Fed Manufacturing Index improved from 21 to 29 in October and durable goods orders were up 1.9% in September.
Focus shifts to Australian inflation figures
Earlier in the day, Reserve Bank of Australia (RBA) Deputy Governor Guy Debelle declined to comment on the possibility of additional relaxation measures at the next RBA meeting. However, Debelle noted that the negative impact of the coronavirus outbreak in Victoria is likely to be less than feared.
On Wednesday, market participants will closely follow Australia’s inflation report. With a preview of this data, “the RBA’s trimmed average consumer price index (CPI) is expected at 0.3% qoq from -0.1% and 1.1% yoy from 1.2% in the second quarter,” he noted. FXStreet Chief Analyst Valeria Bednarik. “If the figures do not meet market expectations, a 0.1% cash rate cut could be taken for granted by the next meeting on November 4, with AUD / USD likely falling towards 0.7000.”
Credits: Forex Street
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