AUD/USD recovers modestly from daily lows, trades around 0.7350

• AUD/USD trades in the negative territory on Wednesday.
• US Dollar Index stays relatively quiet above 92.00.
• Market mood remains cautious ahead of key US data.

After rising to its highest level in nearly three months at 0.7373 during the Asian trading hours, the AUD/USD pair lost its traction and dropped to 0.7325. Ahead of the American session, the pair seems to have gone into a consolidation phase near 0.7350, down 0.15% on a daily basis.

Eyes on key US data

On Tuesday, AUD/USD gained more than 50 pips supported by the broad-based USD weakness and the risk-on market environment. With investors shifting their focus to key macroeconomic data releases from the US, the greenback is staying resilient against its rivals. As of writing, the US Dollar Index was down 0.05% on a daily basis at 92.18.

The US Bureau of Economic Analysis will release the second estimate of the third-quarter Gross Domestic Product (GDP). Additionally, other data from the US will include Durable Goods Orders, Goods Trade Balance, Initial Jobless Claims, New Home Sales and the University of Michigan's Consumer Sentiment Index. More importantly, the FOMC will release the minutes of its November meeting.

In the meantime, the S&P 500 Futures are down 0.06% on the day, reflecting the cautious market mood. Ahead of the Thanksgiving Day holiday, investors may look to book their profits following Tuesday's impressive rally.

On Thursday, the Australian Bureau of Statistics will publish Private Capital Expenditure data for the third quarter.

Technical levels to watch for