AUD/USD extends sideways grind above 0.7350 as trading conditions remain thin
|- AUD/USD is moving up and down in a very narrow range.
- US Dollar Index posts modest gains above 92.00 on Thursday.
- Trading action is likely to remain subdued in the remainder of the day.
The AUD/USD pair closed the previous day virtually unchanged and continues to have a difficult time finding direction on Thursday. As of writing, the pair was flat on the day at 0.7363.
DXY retraces Wednesday's drop in quiet day
On Wednesday, the data from the US showed that the trade deficit widened to $80.29 billion in October from $79.36 billion and the weekly Initial Jobless Claims climbed to 778,000 from 748,000 last week. On a positive note, the US Bureau of Economic Analysis left the third-quarter GDP growth unchanged at 33.1% in its second estimate and the Durable Goods Orders rose more than expected in October.
Although the greenback largely ignored these data releases, the FOMC Minutes in the late American session caused the US Dollar Index to drop below 92.00. The publication revealed that policymakers didn't see the need to adjust the pace or the composition of asset purchases. However, policymakers further noted that the Fed could provide more stimulus by shifting to longer maturities or increasing the pace of purchases.
The US Dollar Index (DXY) dropped to its lowest level since early September at 91.84 during the Asian trading hours but staged a rebound on Thursday. As of writing, the DXY was was up 0.15% on the day at 92.13.
There won't be any significant macroeconomic data releases in the remainder of the week and the pair is likely to continue to fluctuate in its range with the Thanksgiving Day holiday in the US causing trading volumes to thin out.
Technical levels to watch for
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.