AUD/USD looks to close in red below 0.7350, eyes on RBA Minutes
- AUD/USD remains on track to end the day in the negative territory.
- US Dollar Index clings to small daily gains near 92.60.
- Focus shifts to Reserve Bank of Australia's meeting minutes.
The AUD/USD pair struggled to shake off the bearish pressure and touched a daily low of 0.7319 in the early American session before going into a consolidation phase. As of writing, the pair was losing 0.43% on the day at 0.7337.
DXY holds above 92.50 following Friday's decline
Earlier in the day, the disappointing data from China, which showed that Retail Sales and Industrial Production both increased less than expected in July, weighed on the AUD.
On the other hand, the risk-averse market environment, as reflected by falling global equity indexes, helped the greenback stay resilient against its rivals and didn't allow the pair to stage a rebound. Although the sharp fall witnessed in the US Treasury bond yields limited the USD's gains, the US Dollar Index stays afloat in the positive territory above 92.60.
The only data from the US showed that the NY Fed Empire State Manufacturing Index dropped to 18.3 in August from 43 in July. This print missed the market expectation of 29 but was largely ignored by market participants.
On Tuesday, the Reserve Bank of Australia (RBA) will publish the minutes of its August policy meeting. Investors will be looking for fresh clues regarding the impact of the latest coronavirus-related lockdowns on the policy outlook.
Technical levels to watch for