- AUD / USD is losing for the third day in a row.
- The optimistic data from Australia did not help the AUD find demand.
The pair AUD/USD it closed modestly lower on the first day of the week and stretched lower on Tuesday. Although the pair was able to move away from the daily low it set at 0.7530, it remains in negative territory. At time of writing, AUD / USD is down 0.35% to 0.7558.
The USD struggles to preserve its strength
Earlier in the day, data released by the Australian Bureau of Statistics showed that Retail Sales in November increased 7% on a monthly basis. This reading was much higher than October’s 1.4% growth, but failed to provide a boost to the AUD.
On the other hand, the US Dollar Index (DXY) remains quiet after fluctuating in a wide range on Monday. At the start of the week, safe-haven flows dominated financial markets amid renewed coronavirus fears and helped the dollar outperform its rivals. However, with the US stimulus deal allowing investors to stay bullish, the USD lost its appeal and the DXY trimmed its gains.
Regarding US data, US GDP grew 33.4% in the third quarter, exceeding the 33.1% expected. In the early trading hours of the Asian session on Wednesday, private sector trade and credit balance data will be included on the Australian economic agenda.
Technical levels
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