AUD/USD treads water in the Asian session on Thursday morning. The pair continued to trade under the influence of the previous week’s lower momentum.
At the time of writing, AUD/USD is trading at 0.7365, down 0.01% for the day.
The US Dollar Index (DXY), which tracks the performance of the greenback against its six major rivals manages to rebound from the early lower levels to trade near 92.50 with mild gains but remains far from its recent highs.
On the other hand, Aussie lost ground as investors assessed the impact in the rebound of coronavirus cases, as per the latest data from ABC news, new 1,466 cases were recorded on Wednesday.
Australia’s Trade balance for July crosses 10200M market expectations to come in 12117, whereas Investment Lending Home jumped from 0.7% level in June to 1.8% in July. However, the upbeat data failed to lift the sentiment around the Australian dollar.
As for now, traders await the US Initial Jobless Claims, Balance of Trade, Unit Labour Costs, and Factory Orders to gauge the market sentiment.
A combination of factors pushed the AUD/USD pair higher for the third successive session on Thursday. The US dollar languished near one-month lows amid expectations that the Fed would wait for a longer period before deciding to roll back its massive pandemic-era stimulus. This, along with better-than-expected Australian data and the prevalent risk-on mood, acted as a tailwind for the perceived riskier Aussie.
AUD/USD Long (Buy)
Enter at: 0.74175