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- AUD/USD broke above its horizontal range on Monday.
- US Dollar Index looks to close flat below 91.00.
- Durable Goods Orders in US rose less than expected in March.
Last week, the AUD/USD pair fluctuated in a relatively tight range around mid-0.7700s and struggled to make a decisive move in either direction. After breaking above its horizontal range on Monday, however, the pair attracted buyers and remains on track to post its highest daily close since early March. As of writing, AUD/USD was up 0.77% at 0.7805.
AUD capitalizes on rising copper prices
In the absence of significant fundamental drivers, the sharp increase witnessed in copper prices provided a boost to the AUD. Additionally, the upbeat market mood helped risk-sensitive AUD preserve its firm footing ahead of this week’s key macroeconomic events.
The only data from the US on Tuesday revealed that Durable Goods Orders in March increased by 0.5%. This reading came in weaker than the market expectation for an increase of 2.5% but was largely ignored by market participants.
During the Asian trading hours on Wednesday, the first-quarter Consumer Price Index (CPI) data and the Reserve Bank of Australia (RBA) Trimmed Mean CPI figures will be watched closely by market participants. Later in the day, the FOMC will announce Interest Rate Decision and release the Monetary Policy Statement.
Additionally, the US Bureau of Economic Analysis will publish its first estimate of the second-quarter GDP growth on Thursday ahead of Friday’s Personal Consumption Expenditures Price Index figures.
Meanwhile, the US Dollar Index, which lost nearly 1% last week, is staying relatively quiet below 91.00 on Monday, allowing the AUD’s market valuation and the risk perception to drive AUD/USD’s movements.