AUD/USD retreats below 0.7300 as USD continues to gather strength

• AUD/USD struggles to hold above 0.7300 on Wednesday.
• Consumer confidence in Australia weakened more than expected in November. 
• US Dollar Index is at fresh six-day highs above 93.00.

The AUD/USD pair rose to a daily high of 0.7320 on Wednesday but reversed its direction ahead of the American trading hours. As of writing, the pair was down 0.12% on the day at 0.7275.

DXY climbs above 93.00

Earlier in the day, the data from Australia showed Westpac Consumer Confidence declined to 2.5% in November from 11.9% in October and missed the market expectation of 3.8%. Despite the disappointing data, the upbeat market mood during the European trading hours helped the risk-sensitive AUD stay resilient against the greenback.

However, the broad-based USD strength in the second half of the day forced AUD/USD to reverse its direction. The US Dollar Index, which closed virtually unchanged at 92.80 on Tuesday, is currently at its highest level in nearly a week at 93.10, gaining 0.4% on a daily basis.

There won't be any macroeconomic data releases from the US on Wednesday and the trading conditions are likely to remain thin due to the Veterans Day holiday. 

In the early trading hours of the Asian session on Thursday, November Consumer Inflation Expectations data from Australia will be watched closely by the market participants.

Technical levels to watch for