AUD/USD holds onto modest daily losses, remains near 0.7730
- US dollar mixed on Tuesday, DXY hovering slightly above 90.00.
- AUD/USD falls modestly, finds support above 0.7730.
The AUD/USD printed a fresh daily low at 0.7730 before rebounding toward the 0.7750 zone. It continues to move with a bearish intraday bias amid limited price action. A modestly strong US dollar across the board keeps the pair under control.
The DXY is hovering around 90.00. Lower US yields are keeping the dollar limited while at the same time, a tone of precaution among investors offers support to the demand for the greenback. The debate about what the Fed might do next is gaining attention. US inflation data to be released on Thursday will be watched closely.
Key short-term support at 0.7730
The pair approached the 0.7725/30 area that capped the downside on Monday. A break lower would clear the way for a test of 0.7700 (intermediate support at 0.7715). On the upside, a consolidation above 0.7750 would remove the negative bias. The next resistance stands at 0.7765 (June 7 high) followed by 0.7780, which protects 0.7800.
On a wider perspective, the AUD/US continues to move sideways between 0.7700 and 0.7800. Last week it traded momentarily below, but finished the week at 0.7740.