AUD/USD looks to register daily gains, steadies around 0.7750
- AUD/USD remains on track to close the day in the positive territory.
- Wall Street's main indexes post modest daily gains.
- US Dollar Index stays flat around 91.30 in late American session.
The AUD/USD pair gained traction on Wednesday supported by risk flows and rising copper price before going into a consolidation phase during the American trading hours. As of writing, the pair, which touched a daily high of 0.7755, was trading at 0.7745, rising 0.5% on a daily basis.
AUD capitalizes on risk flows, rising copper prices
The benchmark three-month copper on the London Metal Exchanged reached its highest level in ten years at $10,040 on Wednesday and provided a boost to the commodity-sensitive AUD.
In the meantime, the strong gains witnessed in major European equity indexes made it difficult for the greenback to attract investors as a safe haven. The US Dollar Index stayed relatively quiet in a tight range above 91.00 and allowed the AUD's market valuation to remain the primary driver of AUD/USD's movements.
The data from the US showed on Wednesday that the ADP Employment Change rose to +742,000 in April from +565,000 in March. Although this reading fell short of the market expectation of +800,000, it failed to trigger a noticeable market reaction. Moreover, the ISM Services PMI edged lower to 62.7 in April from 63.7.
There won't be any data releases featured in the Australian economic docket on Thursday. Later in the day, the US Department of Labor will publish the weekly Initial Jobless Claims report.
Technical levels to watch for