AUD/USD climbs to 0.7170 area as DXY pushes lower toward 93.00
- AUD/USD is trading in a tight range below 0.7200 on Tuesday.
- US Dollar Index drops toward 93.00 following Monday's rebound.
- Focus shifts to mid-tier data releases from the US.
The AUD/USD pair closed the first day of the week virtually unchanged at 0.7160 and edged higher during the Asian trading hours. However, the pair struggled to preserve its momentum and retreated to 0.7150 in the European session. Nevertheless, AUD/USD staged a modest recovery and was last seen gaining 0.18% on a daily basis at 0.7173.
USD stays on the back foot ahead of mid-tier US data
Earlier in the day, reports suggested that sides were able to make progress during US Trade Representative Robert Lighthizer and Chinese Vice Premier Liu He's phone conversation on US-China trade relations. This development provided a boost to market sentiment and helped China-proxy AUD find demand.
Meanwhile, the upbeat market mood is making it difficult for the greenback to stay strong against its rivals and allowing the pair to stay in the positive territory.
Ahead of the New Home Sales, Richmond Fed Manufacturing Index and Conference Board Consumer Confidence data from the US, the US Dollar Index is down 0.25% on a daily basis at 93.06. Meanwhile, the 10-year US Treasury bond yield is up more than 3% on the day, suggesting that the USD could show resilience if T-bond yields continue to climb during the American session.
The only data featured in the Australian economic docket on Wednesday will be Construction Work Done for the second quarter.
Technical levels to watch for