- AUD/USD is staying directionless for the second straight day.
- US Dollar Index is posting modest gains near 93.00.
- Focus shifts to mid-tier data from the US and RBA commentary.
The AUD/USD pair edged lower toward 0.7100 during the Asian trading hours but pared its losses to trade flat near 0.7130 ahead of the American session.
USD starts new week on firm footing
The broad-based USD strength at the start of the week caused the pair to lose its traction. The risk-averse market environment, as reflected by the sharp decline seen in some European equity indexes and the S&P 500 futures, seems to be helping the greenback outperform its rivals. The US Dollar Index is currently gaining 0.22% on a daily basis at 92.95.
Earlier in the day, the data from Australia showed that the country posted a larger-than-expected trade surplus but had little to no impact on the AUD’s valuation against its peers.
The Federal Reserve Bank of Chicago’s National Activity Index and September New Home Sales data will be featured in the US economic docket on Monday.
During the Asian session on Tuesday, Reserve Bank of Australia’s (RBA) Deputy Governor Guy Debelle and Assistant Governor Michele Bullock will be delivering speeches. Investors expect the RBA to opt out for a rate cut in November and any comments confirming that decision could weigh on the AUD.