AUD/USD extends rally toward 0.7400 on risk flows, USD weakness
- AUD/USD is trading at its highest level in more than two weeks.
- Wall Street's main indexes trade in the positive territory.
- US Dollar Index looks to close second straight day lower.
The AUD/USD pair regathered bullish momentum during the American trading hours and climbed to its strongest level since mid-August at 0.7384. As of writing, the pair was up 0.83% on a daily basis at 0.7377.
USD selloff continues after US data
The broad-based USD weakness and the risk-positive market environment is allowing AUD/USD to push higher on Wednesday. Reflecting the upbeat market mood, major equity indexes in the US are trading in the positive territory.
The data from the US revealed earlier in the day that the private sector employment increased by 374,000 in August. With this reading falling short of the market expectation of 613,000, the greenback came under renewed selling pressure in the second half of the day. As of writing, the US Dollar Index is losing 0.22% 92.43.
Breaking: US private sector employment rises by 374K in August vs. 613K expected.
Other data from the US showed that the economic activity in the manufacturing sector continued to expand at a robust pace in August with the ISM Manufacturing PMI improving to 59.9 from 59.5 in July. Nevertheless, this data failed to help the USD outperform its rivals.
On the other hand, the better-than-expected growth data from Australia is also providing an additional boost to the AUD.
Breaking: Australian Q2 GDP beats estimates, lifts AUD towards highs.
Technical levels to watch for