AUD/USD reaches a fresh three-day high above 0.7300

• AUD/USD is climbing amid an upbeat market sentiment.
• The US Dollar Index retraces Wednesday’s Fed gains, back at 93.
• US Initial Jobless Claims rose to 351K more than the 320K, weighs on the greenback.

Earlier in the Asian session, the pair dipped towards 0.7220 on the back of a hawkish Fed and Evergrande worries. However, as the day advances, the AUD/USD is trading at 0.7304, posting gains of 0.81% at the time of writing.

The market mood is positive. European bourses closed with gains, except the FTSE 100, which lost 0.08% on the back of a hawkish BoE. Across the pond, the four most significant indices are gaining between 0.82% and 1.60%, while the US Dollar Index, which tracks the greenback’s performance versus six peers, is down almost a half percent, sitting at 93.04.

Worse than expected, US economic data weaken the buck

In the US economic docket, the Bureau of Labor Statistics unveiled showed that the US Jobless Claims for the week ending on September 18 rose to 351K versus 320K foreseen by analysts. Further, the US Initial Jobless Claims four-week moving average decreased from 336.5K to 335.75K.

According to employers in different industries, the end of federal pandemic benefits has not yet led to an increase in job applications.

The economic activity in the US continued its expansion in September. The IHS Markit’s Manufacturing PMI rose by 60.1 against  62.5 expected by economists. Despite the miss in the reading, the good news is that manufacturers expanded their workforce numbers at a faster rate in September.

Further, the Kansas City Fed Manufacturing Activity fell to 10 in September 2021 from 22 in the previous month, the lowest reading since July 2020.

On Friday, the Australian economic docket is empty. Meanwhile, in the United States, the New Home Sales for August on a monthly basis will be released. Analysts expect an increase to 0.7M.

KEY TECHNICAL LEVELS TO WATCH