AUD/USD Pair Moves Above 0.7360 As The Risk-Off Mood Strengthens
The greenback has continued its poor performance against some of the leading currencies for the second consecutive day as the risk-off mood in the market strengthens.
AUD/USD Pair Tops The 0.7350 Level
The AUD/USD pair has been trading around the 0.7350 level for the past few hours, with the Aussie unable to muster enough strength to break past the resistance point. However, the pair started the day in a better position, opening higher compared to yesterday’s closing price.
The AUD/USD pair has since passed that level and set a new daily high of 0.7385 earlier today. The rally comes following the upbeat Australian business confidence. Currently, the AUD/USD pair is trading at 0.7367, up by 0.08% over the past few hours.
The US Dollar has been underperforming against most of the other major currencies over the past few hours. The US Dollar Index (DXY) used for tracking the performance of the greenback against the other leading currencies went up to 94.40 earlier today. The increase implies that investors are concerned about various factors, including higher inflation, supply-chain troubles and China headwinds. With the S&P 500 Futures down by 0.5% for the day, the greenback could struggle further against the Aussie and other major currencies in the coming hours.
Aussie Is Rallying Following An Excellent NAB Business Confidence Index
While the greenback is struggling against the other leading currencies, the Aussie has been rallying over the past few hours thanks to the NAB Business Confidence Index rising to 13 in September. This is excellent compared to the -6 reported for August, with September’s figure the highest reading since May.
Despite that, the AUD/USD pair could have gone higher, but the renewed China’s Everngrande default risk after missing two more dollar bond interest payments is affecting investors’ sentiment of the Aussie.
Market participants are currently waiting for the US JOLTS Job Opening data to determine how they will trade for the rest of the day.