AUD/USD rebounds from daily lows, looks to close in red below 0.7750
- AUD/USD remains on track to post daily losses on Monday.
- US Dollar Index clings to modest gains, stays below 92.00.
- Investors wait for RBA to publish its March Meeting Minutes.
The AUD/USD pair dropped to a daily low of 0.7707 in the early American session on Monday but managed to erase a portion of its daily losses. As of writing, the pair was down 0.3% on a daily basis at 0.7740.
In the absence of significant fundamental drivers and macroeconomic data releases, AUD/USD seems to be having a tough time making a decisive move in either direction. Nevertheless, the broad-based USD strength is causing the pair to stay in the negative territory.
The US Dollar Index, which snapped a three-day losing streak and gained 0.3% on Friday, extended its rebound on Monday and was last seen rising 0.2% at 91.86.
Eyes on RBA Meeting Minutes
The only data from the US showed on Monday that the NY Empire State Manufacturing Index improved to 17.4 in March from 12.1 in February. Although this reading surpassed the market expectation of 14.5, it failed to trigger a meaningful market reaction.
On Tuesday, the Reserve Bank of Australia (RBA) will release the minutes of its March meeting. Earlier in the month, RBA Governor Phillip Lowe indicated that the bank was looking to extend its bond purchases programme. Any new information about a possible dovish shift in the RBA's policy outlook could weigh on AUD and force AUD/USD to push lower during the first half of the day.
Technical levels to watch for