AUD/USD retreats modestly from daily highs toward 0.7150
- AUD/USD rose to a daily high of 0.7171 on Thursday.
- Upbeat data from Australia helped AUD gather strength.
- US Dollar Index is edging slightly higher ahead of American session.
The AUD/USD pair gained traction on Thursday and rose to a daily high of 0.7171. With the market action turning subdued ahead of the American session, the pair retreated from its highs and was last seen gaining 0.25% on the day at 0.7155.
Earlier in the day, the data from Australia showed that that the ANZ Business Confidence in October improved to -14.5 from -28.5 in September and beat the market expectation of -32.6 by a wide margin. Additionally, the ANZ Activity Outlook rose sharply from -5.4% to 3.6% and helped the AUD preserve its strength against its rivals.
DXY stages a technical correction
On the other hand, the US Dollar Index (DXY), which closed in the negative territory on Wednesday, is posting modest recovery gains at 93.68 and making it difficult for AUD/USD to push higher.
Later in the day, the US Department of Labor will release its weekly Jobless Claims data. Meanwhile, investors will be paying close attention to Wall Street's performance following Wednesday's impressive rally. At the moment, S&P 500 futures are up 0.45% on the day and the greenback could lose interest as a safe-haven if stock markets continue to edge higher.
In the early Asian session on Friday, Home Loans and Investment Lending for Homes data will be featured in the Australian economic docket. Moreover, the Reserve Bank of Australia will release its Financial Stability Review.
Technical levels to watch for