AUD/USD struggles to stage a decisive rebound above 0.7400
- AUD/USD is trading modestly above 0.7400 on Tuesday.
- US Dollar Index stays below 91.00 ahead of mid-tier US data.
- Data from Australia showed House Prices in Q3 rose more than expected.
The AUD/USD pair dropped to 0.7372 on Monday but erased a majority of its daily losses to close above 0.7400. On Tuesday, the pair is staying in a consolidation phase and was last seen losing 0.05% on the day at 0.7417.
AUD fails to capitalize on upbeat data
During the Asian trading hours, the data from Australia showed the House Price Index in the third quarter increased by 0.8% and beat the market expectation for a decline of 1%. Additionally, the National Australi Bank's Business Confidence Index improved sharply to 12 in November from 3 in October but failed to provide a boost to the AUD.
On the other hand, the US Dollar Index is posting small daily gains near 90.90 on Tuesday as investors remain cautious while waiting for fresh developments surrounding the EU-UK trade talks. Reflecting the sour market mood, the S&P 500 Futures are down 0.5% on the day.
Later in the session, the US Bureau of Labor Statistics will release the Nonfarm Productivity and Unit Labor Costs data for the third quarter. Meanwhile, market participants will keep a close eye on Wall Street's performance. A sharp decline in US stocks could trigger a flight to safety and help the greenback gather further strength.
On Wednesday, the Westpac Consumer Confidence Index will be the only data featured in the Australian economic docket.
Technical levels to watch for