AUD/USD extends sideways grind near mid-0.7700s after US data
- AUD/USD is struggling to make a decisive move in either direction.
- US Dollar Index stays in the red below 90.00.
- Consumer confidence in US weakened modestly in May.
The AUD/USD pair rose to a daily high of 0.7777 but lost its traction in the second half of the day. As of writing, the pair was virtually unchanged on a daily basis at 0.7750.
DXY stays below 90.00
Earlier in the day, the ongoing selling pressure surrounding the greenback helped the pair edge higher. With Wall Street’s main indexes struggling to preserve Monday’s bullish momentum, however, the US Dollar Index erased a portion of its daily losses and limited AUD/USD’s upside. Currently, the S&P 500 is flat on the day at 4,197 and the US Dollar Index (DXY) is down 0.08% at 89.75.
In the meantime, the benchmark 10-year US Treasury bond yield fell to its lowest level in two weeks and was last seen losing 1.7% at 1.576%, making it difficult for the DXY to push higher.
The data from the US revealed on Tuesday that the Conference Board’s Consumer Confidence Index declined to 117.2 in May from 117.5 in April, compared to analysts’ estimate of 119.2. Additionally, the US Census Bureau reported that New Home Sales fell by 5.9% in April.
There won’t be any other data releases from the US in the remainder of the day. On Wednesday, Westpac Leading Index will be featured in the Australian economic docket.