AUD/USD climbs above 0.6500 on broad-based USD weakness
- US Dollar Index falls for third straight day on Wednesday.
- Upbeat market mood continues to weigh on the greenback.
- Coming up: Richmond Fed Manufacturing Index and CB Consumer Confidence data from US.
The AUD/USD pair spent the Asian session moving sideways near 0.6450 but started to push higher as the USD came under renewed pressure ahead of the American session. The pair rose to its highest level since March 12th at 0.6514 and has gone into a consolidation phase. As of writing, the pair was up 0.65% on the day at 0.6505.
Focus shifts to US data
Risk-on flows continue to dominate the financial markets on Tuesday as investors remain optimistic about major economies moving closer to reopening. Mirroring the upbeat mode, major European equity indexes are posting decisive daily gains while the USD is losing interest.
The US Dollar Index, which closed the last two trading days in the negative territory, was last down 0.55% on the day at 99.50.
The first data release of the day from the US showed that the Goods Trade Balance in March was -$64.22 billion but was largely ignored by the market participants. Later in the day, the Richmond Fed Manufacturing Index and the Conference Board's Consumer Confidence Index will be featured in the US economic docket as well.
On Wednesday, Consumer Price Index data for the first quarter from Australia will be looked upon for fresh impetus. Earlier in the day, Australian Treasury's Deputy Secretary Jenny Wilkinson said that they were not working on a new stimulus package to support the economy.
Technical levels to watch for