- AUD / USD is experiencing a modest rebound after Tuesday’s slide.
- The US dollar index falls back but remains above 93.00.
- Ahead: US ADP employment data and stimulus plan presentation.
After falling sharply on Tuesday, AUD / USD is regaining some of the ground lost on Wednesday. It reached a session high at 0.7623. It is trading around 0.7615, supported by some weakness in the dollar.
DXY moderates rise, but remains firm
Earlier in the day, the data from China showed that business activity in the manufacturing and services sectors expanded at a stronger rate than expected in March. In addition, the Bureau of Statistics of Australia reported that building permits in February increased 21.6% and exceeded market expectations of 5% by a wide margin. These upbeat data provided a slight boost to the AUD in the Asian session.
The other key factor in AUD / USD rebound was the slight correction and consolidation of the US Dollar Index (DXY), which is declining modestly on Wednesday, but still clinging to recent gains and it remains above 93.00. The decline in Treasury yields was one of the factors that limited the dollar.
The focus of attention is to be expected to continue on the bond market and what happens on Wall Street. There will also be important data in the US: the ADP employment report, the Chicago PMI and the pending home sales report. President Biden will announce a nearly $ 2 trillion infrastructure plan to be used over eight years, funded by an increase in corporate taxes.
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.
