AUD/USD drops to five-day lows near 0.7150 on broad USD strength
- AUD/USD lost its traction in the early American session.
- US Dollar Index is edging higher toward mid-93.00s.
- Safe-haven flows seem to be helping USD gather strength.
The AUD/USD pair rose to 0.7200 area earlier in the day but lost its traction during the American trading hours as the USD started to gather strength on safe-haven flows. As of writing, the pair was trading at a fresh five-day low of 0.7157, losing 0.7% on a daily basis.
During the Asian session, the upbeat data from China, which showed that the country's imports in September surged by 13.2%, helped the AUD stay resilient against its rivals.
DXY extends daily rebound
On the other hand, the data published by the US Bureau of Labor Statistics revealed that the annual Core Consumer Price Index (CPI) stayed unchanged at 1.7% in September and was largely ignored by the market participants.
With investors seeking refuge amid the lack of progress in US stimulus talks, Wall Street's main indexes opened the day in the negative territory and allowed the greenback to find demand. At the moment, both the Dow Jones Industrial Average and the S&P 500 indexes are down around 0.4% on a daily basis and the US Dollar Index (DXY) is gaining 0.51% at 93.51.
On Wednesday, Westpac Consumer Confidence and HIA New Home Sales data will be featured in the Australian economic docket. However, market participants are unlikely to react to these data ahead of Thursday's critical labour market report.
Technical levels to watch for