- AUD/USD is seeing a technical correction on Monday.
- Rising risk sentiment boosts AUD on Monday.
- US Dollar Index declines to 94.20 pre-US open.
The AUD/USD is advancing, snapping a 6 straight losing session streak. AUD/USD trades + 0.58% 0.7067.
China released data over the weekend revealed that industrial profits grew by 19.1% YoY in August. The data boosted the Aussie Dollar, also known as a China proxy, at the start of the week.
USD falls amid rising risk appetite risk-positive
The improving mood in the market, also seen in rallying equities, meant the safe have US Dollar struggled to hold strength versus its peers. Following a 1.5% rally across the previous week US Dollar Index moved downward on Monday. DXY trades -0.4% at 94.20.
The Federal Reserve Bank of Dallas’ Manufacturing Business Index is the only US macro release this afternoon.
S&P 500 futures trade 1% higher on Monday, pointing to a strong open on Wall Street. A stock market rally in the US could drag further on the greenback permitting AUD/USD to edge higher.