AUD/USD advances beyond 0.7350 as USD struggles to preserve its strength
- AUD/USD remains on track to close with strong gains.
- US Dollar Index edges lower on Wall Street rally.
- RBA's Debelle says he is not convinced negative rates would work.
The AUD/USD pair climbed to its highest level since early September at 0.7368 but lost its traction ahead of the American session. After edging lower toward 0.7300, the pair regained its traction in the late American session and was last seen gaining 0.93% on the day at 0.7352.
During the Asian trading hours, Reserve Bank of Australia's (RBA) Deputy Governor Guy Debelle said that he was not convinced that negative rates would work in Australia. Meanwhile, the data published by the Australian Bureau of Statistics revealed that Exports and Imports in October rose by 6% and 8%, respectively.
DXY fails to hold in the positive territory
In addition to the RBA commentary, the upbeat market mood provided a boost to the risk-sensitive AUD on Tuesday. Although the greenback took advantage of the rising US Treasury bond yields in the early American trading hours and recovered its losses, the US stock market rally caused the US Dollar Index to turn south.
As of writing, the Dow Jones Industrial Average and the S&P 500 were both up around 1.7% on a daily basis and the DXY was down 0.26% at 92.26.
Meanwhile, the data from the US showed that the Conference Board's Consumer Confidence Index fell to 96.1 in November from 101.4 in October but had little to no impact on market sentimet.
There won't be any significant macroeconomic data releases from Australia on Wednesday and the market's risk perception is likely to remain the primary driver of AUD/USD's movements.
Technical levels to watch for