• AUD/USD is staging a rebound after finding support near 0.7200.
• US Dollar Index struggles to extend its rally.
• Risk flows help AUD gather strength against its rivals.

The AUD/USD pair lost more than 60 pips on Tuesday and tested 0.7200 but reversed its direction on Wednesday supported by risk flows and modest USD weakness. As of writing, the pair was trading at fresh daily highs near 0.7260, gaining 0.6% on a daily basis.

DXY looks to snap six-day winning streak

Earlier in the day, the data from Australia showed that the Westpac Consumer Confidence in September rose sharply to 18% from -9.5% in August and helped the AUD gather strength against its rivals.

Meanwhile, the upbeat market mood, as reflected by decisive gains witnessed in major global equity indexes, provided an additional boost to the risk-sensitive AUD. At the moment, the S&P 500 futures are up more than 1% on the day, suggesting that Wall Street's main indexes are likely to open the day strongly higher after registering large losses in the previous three trading days.

On the other hand, the US Dollar Index (DXY) seems to be having a difficult time preserving its bullish momentum with the greenback losing interest amid risk flows. The DXY, which closed the last six days in the positive territory, was last down 0.22% on the day at 93.31.

JOLTS Job Openings will be released from the US at 1400 GMT. In the early Asian session on Thursday, Consumer Inflation Expectations will be featured in the Australian economic docket. 

Technical levels to watch for