AUD/USD retreats from highs, steadies around mid-0.7100s
- AUD/USD rose to its highest level since April 2019 at 0.7182.
- Choppy market action in American session paves the way for consolidation.
- US Dollar Index struggles to recover above 95.00.
Following Tuesday's impressive rally, the AUD/USD pair retreated to 0.7100 in the late Asian session but didn't have a tough time gaining traction. After renewing its highest level since April 2019 at 0.7182, however, the pair has gone into a consolidation phase in the second half of the day and was last seen gaining 0.25% on the day at 0.7145.
USD selloff softens in the American session
The selling pressure surrounding the greenback remained intact on Wednesday as Wall Street's main indexes opened the day in the positive territory. The US Dollar Index (DXY), which closed the previous three trading days in the negative territory and lost 1.2% during that period, is now down 0.2% at 94.96.
Nevertheless, the DXY, at least for now, seems to have steadied as investors are waiting for the next significant catalyst.
Earlier in the day, the data from the US showed that Existing Home Sales in June surged by 20.7% but missed the market expectation of 24.5%.
On Thursday, the National Australia Bank (NAB) will release its Business Confidence data for the second quarter. Later in the day, weekly Initial Jobless Claims and the Federal Reserve Bank of Kansas' Manufacturing Index will be featured in the US economic docket.
Technical levels to watch for