AUD/USD clings to modest daily gains above 0.7300 ahead of US data
- AUD/USD is rising for the third straight trading day on Tuesday.
- RBA says it stands ready to provide more policy stimulus.
- US Dollar Index continues to edge lower toward 93.30.
The AUD/USD pair closed the first day of the week in the positive territory and advanced to a fresh daily high of 0.6340 on Tuesday. In the absence of significant fundamental drivers, the pair seems to have gone into a consolidation phase during the European trading hours and was last seen gaining 0.12% on the day at 0.7327.
The risk rally that was triggered on renewed coronavirus vaccine optimism provided a boost to the risk-sensitive AUD on Monday. Additionally, the upbeat Industrial Production and Retail Sales data from China helped the currency outperform its rivals.
On Tuesday, the Reserve Bank of Australia's (RBA) November Meeting Minutes showed that the bank's governing board felt negative rates were not necessary. However, the statement revealed that the RBA stands ready to provide additional stimulus via increased bond purchases. Nevertheless, the AUD's reaction to these remarks remained relatively muted.
USD remains on the back foot ahead of US data
On the other hand, the US Dollar Index is edging lower after closing in the negative territory on Monday and allowing AUD/USD to cling to its daily gains.
In the second half of the day, Industrial Production and Retail Sales data from the US will be looked upon for fresh catalysts. Meanwhile, the US Dollar Index is down 0.35% on the day at 92.31.
In the early trading hours of the Asian session on Wednesday, RBA Governor Philip Lowe is scheduled to deliver a speech. Additionally, Westpac Leading Index and Wage Price Index data will be featured in the Australian economic docket.
Technical levels to watch for