AUD/USD drops below 0.7700 as USD starts to gather strength ahead of key data
- AUD/USD edges lower after closing flat on Monday.
- US Dollar Index climbs above 90.60 during European session.
- Eyes on Retail Sales, PPI and Industrial Production data from US.
The AUD/USD pair came under modest bearish pressure on Tuesday and dropped to its lowest level in 10 days at 0.7685. As of writing, the pair was down 0.28% on a daily basis at 0.7690.
Eyes on US data
The USD's market valuation continues to impact AUD/USD's movements at the start of the week. The US Dollar Index, which moved sideways around 90.50 on Monday, gained traction during the European trading hours and was last seen trading highest level in a month at 90.63, rising 0.15% on the day.
Later in the session, May Retail Sales and Producer Price Index (PPI) data from the US will be looked upon for fresh impetus. Additionally, the US Federal Reserve will release the Industrial Production and Capacity Utilization figures.
Meanwhile, Wall Street's main indexes look to open near Monday's closing levels with the Dow Futures and the S&P Futures both staying flat ahead of the opening bell.
Earlier in the day, the Reserve Bank of Australia's June meeting minutes revealed that the board agreed it would be premature to consider ceasing the bond-buying programme. "Policy would need to remain highly accommodative to reach full employment," the publication read and the cautious tone made it difficult for the AUD to find demand.
On Wednesday, the Westpac Leading Index will be the only data featured in the Australian economic docket.
Technical levels to watch for