AUD/USD extends daily slide to 0.7770 area ahead of mid-tier US data
- AUD/USD turned south following a strong start to the week.
- US Dollar Index posts modest gains around 91.00.
- Investors await mid-tier data releases from the US.
The AUD/USD pair started the week on a firm footing and registered its highest daily close since early March near 0.7800 on Monday supported by the upbeat market mood and rising copper prices. However, the pair struggled to preserve its bullish momentum and erased a large portion of its gains. As of writing, AUD/USD was down 0.35% on the day at 0.7772.
DXY recovers modestly on Tuesday
In the absence of significant fundamental drivers, the risk perception is impacting AUD/USD's movements on Tuesday. Reflecting the cautious market mood, which makes it difficult for the AUD to find demand, major European equity indexes trade in the negative territory.
Meanwhile, after closing virtually unchanged on Monday, the US Dollar Index (DXY) is edging higher toward 91.00, allowing the bearish pressure on AUD/USD to remain intact.
In the second half of the day, the Conference Board's Consumer Confidence Index and February Housing Price Index data from the US will be looked upon for fresh impetus. Ahead of these data, the DXY is up 0.12% at 90.95.
On Wednesday, the Consumer Price Index (CPI) and the Reserve Bank of Australia's (RBA) Trimmed Mean CPI data will be featured in the Australian economic docket.
Technical levels to watch for