AUD/USD struggles to stay above 0.7400 as USD rebounds

• AUD/USD pares part of its previous two day’s upside momentum.
• The Australian dollar losses against the greenback on mixed economic data.
• US Dollar rebounds from the lower levels amid risk-aversion.

AUD/USD pares initial gain and slips into negative territory in the early European trading hours. The pair opened higher but failed to preserve the momentum.

At the time of writing, AUD/USD is trading at 0.7390, down 0.07% for the day.

The US Dollar Index (DXY), which tracks the performance of the greenback against its six major rivals recovers from its earlier lower levels to trade near the 92.00 mark.

The buying interest in the US dollar weighs on the risker assets like Aussie. 

On the other hand, Aussie loses grounds as investors assessed the impact of extended lockdown in Sydney that began today after a spike to record levels of COVID-19 cases. 

Australia’s Q2 Producer Price Index (PPI) rose 0.7% on a quarterly basis, beating the 0.4% growth in Q1. The Private Sector Credit rose 0.9% in June.

It is worth noting that, S&P Futures were trading at $4,373, down 0.87% for the day.

As for now, traders await the US Personal Spending and Income data, and Personal Consumption Expenditure Index (PCE) to trade fresh trading impetus.

AUD/USD additional levels