AUD/USD stages modest rebound toward 0.7750, eyes on US data

AUD/USD started to edge higher after closing in on 0.7700.
US Dollar Index struggles to stay in the positive territory.
Retail Sales in US is expected to decline by 0.5% in February.
After spending the Asian session in a tight range around 0.7750, the AUD/USD pair lost its traction and dropped to a daily low of 0.7711 in the early European morning. However, with the greenback struggling to preserve its strength, the pair edged higher in the last hour and is currently trading at 0.7735, where it was down 0.24% on the day.

In its March Meeting Minutes on Tuesday, the Reserve Bank of Australia (RBA) reiterated that it does not expect to achieve its employment and inflation goals before 2024, signalling that the policy will remain stimulatory for a long time. Nevertheless, investors paid little to no attention to this publication.
DXY loses bullish momentum
On the other hand, the US Dollar Index (DXY) is posting small daily losses below 91.80 as the 10-year US Treasury bond yield is pushing lower for the second straight day on Tuesday and is allowing AUD/USD to pull away from daily lows.

Later in the session, February Retail Sales and Industrial Production data will be featured in the US economic docket. Investors expect Retail Sales to decline by 0.5%. A stronger-than-expected print could help the USD regather its strength as it could be seen as a factor that is likely to boost inflation.

On Wednesday, Westpac Leading Index data from Australia will be watched closely by market participants.