AUD/USD tests daily highs as greenback remains under pressure

After touching its daily high at 0.7465, the AUD/USD pair eased towards mid-0.74s but gathered momentum again as the greenback sell-off continues in the NA session. As of writing, the pair is trading at 0.7462, up 0.3% on the day.

Although the initial reaction to the U.S. data carried the US Dollar Index into the positive area near 97.50, the effect faded away quickly, pushing the index towards the critical 97 handle. At the moment, the index is at 97.20, losing 0.13% on the day. The mixed batch of data from the U.S. failed to provide a support for the greenback. Moreover, after a long weekend, major equity indexes in the U.S. started the day lower, suggesting a weak market sentiment.

• US Dollar sinks to lows post-US data

Low-risk appetite could also be seen in the falling U.S. Treasury-bond yields. As the demand for the safer T-bonds rise, their return on investment falls, eventually hurting the greenback. As of writing, the yield on the 10-year T-bond is losing more than 1% on the day. 

• Wall Street opens lower as investors return from long weekend

Later in the Asian session, Private Sector Credit and ANZ Business Confidence will be released from Australia but they are unlikely to cause any major fluctuations in the pair. The most important data for the pair will be the NFP from the U.S., scheduled to be released on Friday. Ahead of the data, the DXY movements should drive the pair's price action.

Technical outlook

Despite today's upsurge, the RSI on the daily graph is sitting near 50 handle, suggesting that the technical outlook is still neutral in short-term. The immediate resistance for the pair could be seen at 0.7500 (psychological level) followed by 0.7560 (20-WMA) and 0.7610 (Apr. 17 high). On the downside, supports are located at 0.7425 (20-DMA), 0.7330 (May 9 low) and 0.7285 (Jan. 6 low).

• AUD/USD offered below 0.7532 – Commerzbank