AUD/USD stages modest recovery after edging lower toward 0.7300
- AUD/USD is posting small daily gains ahead of American session.
- US Dollar Index extends rally beyond 93.00 on Tuesday.
- Focus shifts to mid-tier US data releases, Fedspeak.
The AUD/USD pair dropped to its lowest level in nearly two weeks at 0.7316 on Tuesday but managed to stage a modest rebound ahead of the American session. As of writing, the pair was up 0.14% on the day at 0.7342.
DXY holds above 93.00 ahead of Fedspeak
Earlier in the day, the data from Australia revealed that the National Australia Bank's (NAB) Business Confidence Index declined to -7 in July from 11 in June. This reading fell short of the market expectation of 15. Additionally, the NAB's Business Conditions Index fell to 11 from 24 and made it difficult for the AUD to find demand.
In the meantime, the US Dollar Index (DXY) continued to push higher after closing the previous two trading days in the positive territory and reached its strongest level in nearly three weeks at 93.10. Currently, the DXY is clinging to small daily gains at 93.04, not allowing AUD/USD to extend its recovery.
Later in the day, the Nonfarm Productivity and the Unit Labor Costs data for the second quarter from the US will be looked upon for fresh impetus. More importantly, Cleveland Fed President Loretta Mester and Chicago Fed President Charles Evans will be delivering speeches.
On Wednesday, Westpac Consumer Confidence Index data for August will be featured in the Australian economic docket.
Technical levels to watch for