AUD/USD trades with modest gains near 0.7260 ahead of US data
- AUD/USD is edging higher after retreating earlier in the day.
- US Dollar Index consolidates weekly losses near 93.00.
- Eyes on July Durable Goods Orders data from US.
The AUD/USD pair closed the first two days of the week in the positive territory but edged slightly lower during the European trading hours on Wednesday. Nevertheless, the pair didn't have a difficult time erasing its losses and was last seen posting small daily gains at 0.7262.
Eyes on US data
In the absence of high-tier macroeconomic data releases, the risk perception and the USD's market valuation continues to drive AUD/USD's movements. The US Dollar Index, which fell for the second straight day on Tuesday, seems to have gone into a consolidation phase a little below 93.00, making it difficult for AUD/USD to find direction.
Later in the day, July Durable Goods Orders data from the US will be looked upon for fresh impetus. In the meantime, US stocks index futures stay flat on the day, suggesting that the risk rally could lose its stream on Wednesday.
Previewing the data, "expectations for Durable Goods Orders are low, raising the chances of an upside surprise," said FXStreet analyst Yohay Elam. "The need to correct after several days of dollar falls and sensitivity ahead of Powell's speech implies the publication could serve as the trigger to scoop up the greenback."
Durable Goods Orders Preview: The trigger for a greenback comeback?
Private Capital Expenditure for the second quarter will be the only data featured in the Australian economic docket on Thursday.
Technical levels to watch for