- AUD / USD is trading modestly above 0.7400 on Tuesday.
- The US Dollar Index remains below 91.00 ahead of mid-level US data.
- Data from Australia showed that house prices in the third quarter rose more than expected.
The pair AUD/USD It fell to 0.7372 on Monday, but erased most of its daily losses to close above 0.7400. On Tuesday, the pair remains in a consolidation phase and was last seen shedding 0.05% on the day at 0.7417.
AUD fails to capitalize on optimistic data
During Asian business hours, data from Australia showed that the House Price Index in the third quarter rose 0.8% and beat market expectations of a 1% drop. Additionally, the National Australi Bank’s business confidence index improved sharply to 12 in November from October 3, but failed to give the Australian dollar a boost.
On the other hand, the US Dollar Index is posting small daily gains near 90.90 on Tuesday, as investors remain cautious as they await further developments around the EU-UK trade talks. Reflecting the bad mood in the market, S&P 500 futures were down 0.5% on the day.
Later in the session, the US Bureau of Labor Statistics will release nonfarm productivity and unit labor cost data for the third quarter. Meanwhile, market participants will closely monitor Wall Street’s performance. A sharp fall in US equities could trigger a flight to safety and help the dollar pick up steam.
On Wednesday, Westpac’s Consumer Confidence Index will be the only data on the Australian economic docket.
Technical levels
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