- AUD / USD is moving within a tight range on Tuesday.
- The DXY US Dollar Index remains below 93.00 ahead of the American session.
- Data from Australia showed an improvement in business confidence.
The pair AUD/USD rose to its highest level since mid-September at 0.7341 on Monday, but it returned a large part of its gains to close below 0.7300. In the absence of significant fundamental drivers on Tuesday, the pair is moving sideways around the 0.7280 region.
DXY index remains below 93.00
On Monday, the recovery of appetite for risk that was triggered after Pfizer announced that its coronavirus vaccine was more than 90% effective helped the Australian dollar gain strength. However, the surge in US Treasury yields in the second half of the day gave the USD a boost and made it difficult for the pair to retain its bullish momentum.
Earlier in the day, data from Australia has shown that National Bank of Australia business confidence improved to 5 points in October from -4 in September, but was largely ignored by market participants. At the time of writing, the DXY US Dollar Index is virtually unchanged on the day at 92.87.
The only data included in Tuesday’s US economic calendar will be the NFIB Business Optimism Index. Meanwhile, investors will monitor Wall Street’s performance. After climbing to a new all-time high in the opening bell on Monday, the S&P 500 Index closed more than 1% higher. However, S&P 500 futures are posting modest daily losses at the moment, suggesting that US stocks could enter a consolidation phase.
Credits: Forex Street
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