- AUD / USD is still on track to close the day in negative territory.
- The US Dollar Index clings to small daily gains, hovering below 91.00.
- Focus shifts to first quarter inflation data for Australia.
The pair AUD/USD It failed to take advantage of Monday’s impressive gains and fell to a daily low of 0.7764 before entering a consolidation phase on Tuesday. At time of writing, the pair was down 0.35% on the day at 0.7772.
Rising US Treasury yields appear to be helping the dollar to remain resilient against its rivals. With the benchmark 10-year US Treasury yield gaining more than 1% on Tuesday, the US dollar index remains on track to close the day modestly higher, slightly below 91.00.
Hours earlier, data released by the Conference Board showed that the US Consumer Confidence Index rose to 121.7 in April, beating the market’s expectation of 113 by a wide margin. However, this upbeat reading has practically no impact on risk sentiment and the top three Wall Street indices lost between 0.1% and 0.35% for the last time.
In the early trading hours of the Asian session on Wednesday, market participants will closely follow data from Australia’s consumer price index. The annual CPI is expected to rise to 1.4% in the first quarter from 0.9% and a higher than expected figure could weigh on the AUD and vice versa.
AUD / USD perspective
“AUD / USD remains capped below its recent highs of 0.7815 / 16, as well as the most important high of 0.7838 / 49,” Credit Suisse analysts noted. “A breakout here would resolve the aforementioned range to the upside by activating an uneven base structure, confirming a resumption of the broader uptrend, suggesting a quick move to 0.7900 / 05 and then to the 2021 high at 0.8000 / 07 “.
“A sustained move below 0.7700 / 7691 would reduce the risks within the range and complete an intraday ‘double top’, with the next support just below here at 0.7680 / 74,” the analysts added.
Technical levels
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