FxWirePro: AUD/USD extends sideways grind, holds marginal gains above 55-EMA support

AUD/USD chart - Trading View 

AUD/USD was trading 0.05% higher on the day at 0.7755 at around 05:40 GMT, after closing 0.33% higher in the previous session.

Risk-on market mood on Tuesday is supporting risky assets. On the other side, dollar remains on the back foot in response to Fed dovishness.

The US Dollar Index (DXY), which tracks the performance of the greenback against the six majors, was down 0.08% at the time of writing, bias bearish. 

The Fed reaffirmed tapering measures are not on cards despite the strong economic performance, weighing on the dollar across the board.

Price action is within daily cloud and is currently extending sideways grind along 55-EMA support. 

On the data front, U.S. building permits, redbook, monthly home price, consumer confidence, new home sales, Richmond Fed's manufacturing index in focus for impetus. 

Break below 55-EMA will see test of cloud base at 0.7687. Break below cloud will drag the pair lower. 

On the flipside, the pair is consolidating break above 110-month EMA, upside resumption will see test of 200-month MA.