AUD/USD refreshes intraday high to 0.7723, up 0.18% on the day, amid early Wednesday. In doing so, the Aussie pair benefits from the recent run-up in S&P 500 Futures, actually corrective pullback, as scheduled economics from the Oz nation flash mixed signals.
S&P 500 Futures gains 0.11% on a day after the Wall Street benchmarks were mostly drowned by the technology shares sell-off and talks over further taxes in multinational companies, backed by the International Monetary Fund (IMF).
Also weighing on the market sentiment were the initial comments from US Treasury Secretary Janey Yellen who considered rate hikes as favorable to the US economy before saying, “not predicting or recommending” such moves.
Elsewhere, the coronavirus (COVID-19) updates from India and Japan remain grim while vaccine developments keep markets hopeful of a faster economic recovery in the West. Recently, Canada announced news covid restrictions in Alberta province.
Amid these plays, US 10-year Treasury yields hold steady around 1.59% as Japan’s off limits bond trading. The same helps traders to trim the US dollar’s gains marked the previous day.
Talking about data, Australia’s AiG Performance of Construction Index grew below 61.8 prior to 59.1 in April but Commonwealth Bank PMIs crossed forecast and previous readouts.
Moving on, Aussie Building Permits for April is an immediate catalyst to watch, forecast 3.0% versus 21.6% MoM, but major attention will be given to the macros ahead of the key US ISM Services PMI and ADP Employment Change.
A clear break above the 50-day SMA level of 0.7710 directs AUD/USD towards the 0.7760-65 resistance area.