- AUD / USD extended the bounce from the 0.7700 area, cutting Tuesday’s losses.
- DXY fails to stay in positive territory, it falls towards 91.00.
- An improvement in market sentiment boosted the Australian dollar.
The AUD/USD it recovered sharply from weekly lows, reaching a new daily high at 0.7762 during the US session. Previously, the pair bottomed at 0.7698, the lowest level in a week.
A weaker US dollar across the board pushed AUD / USD higher. The dollar weakened amid soaring stocks. The US Dollar Index (DXY) failed to sustain gains and moved towards 91.00.
The improvement in market sentiment on Wall Street was a key driver for the pair. The Dow Jones is up 0.55% and the Nasdaq is up 0.61%. US yields moved sideways on Wednesday, the 10-year yield hovering around 1.56%. Gold prices rose, approaching $ 1,800.
No economic data was released in the United States on Wednesday. On Thursday, in Australia, the Australian National Bank’s business confidence index will be released and in the US, existing home sales and unemployment claims.
The 0.7700 area becomes a key support
AUD / USD again four supports around 0.7700. A consolidation below that level would clear the way for further losses for the Australian dollar. The next support is at 0.7670 / 75. On the upside, the pair is currently facing resistance at 0.7750. Above the next level to watch is 0.7780, with a break to the upside strengthening the bullish outlook.