May 5, 2021 12:51 GMTFXStreet News
AUD/USD is edging higher following Tuesday’s sharp drop.
US Dollar Index retreats from multi-week highs, holds above 91.00.
Focus shifts to ADP and Services PMI data from US.
The AUD/USD pair dropped to its lowest level since mid-April at 0.7676 on Tuesday and managed to stage a technical correction before closing in the negative territory above 0.7700. With the greenback losing interest on Wednesday, the pair extended its recovery on Wednesday and was last seen gaining 0.43% on the day at 0.7738.
Improving market mood hurts USD
Earlier in the day, the data from Australia showed that the Commonwealth Bank Services PMI rose to 58.8 in April. This reading came in slightly better than the market expectation of 58.6 and helped the AUD gather strength.