AUD/USD struggles to make a convincing rebound, trades in red near 0.7560
- AUD/USD is posting losses for the third straight day.
- Upbeat data from Australia failed to help AUD find demand.
- US Dollar Index clings to small gains above 90.00 ahead of US data.
The AUD/USD pair closed the first day of the week modestly lower and stretched lower on Tuesday. Although the pair was able to pull away from the daily low it set at 0.7530, it remains in the negative territory. As of writing, AUD/USD was down 0.35% at 0.7558.
USD struggles to preserve its strength
Earlier in the day, the data published by the Australian Bureau of Statistics showed that Retail Sales in November increased by 7% on a monthly basis. This reading came in much higher than October's growth of 1.4% but failed to provide a boost to the AUD.
On the other hand, the US Dollar Index (DXY) is staying calm after fluctuating in a wide range on Monday. At the start of the week, safe-haven flows dominated financial markets amid renewed coronavirus fears and helped greenback outperform its rivals. With the US stimulus deal allowing investors to remain optimistic, however, the USD lost its attractiveness and the DXY pared its gains.
Later in the session, the US Bureau of Economic Analysis' third-quarter Gross Domestic Product (GDP) report, Existing Home Sales and the Richmond Fed Manufacturing Index data from the US will be looked upon for fresh impetus. In the early trading hours of the Asian session on Wednesday, Private Sector Credit and Trade Balance data will be featured in the Australian economic docket.
Technical levels to watch for